10/29/18 Update: Permira funds has completed the acquisition of Cisco’s Service Provider Video Software Solutions (SPVSS) business and created a new company named Synamedia.
I would like to share with you an important change we are making in our Service Provider (SP) video business.
Today, Cisco and Permira, a global private equity firm, announced that a company backed by the Permira Funds has entered into a definitive agreement to acquire Cisco’s Service Provider Video Software Solutions (SPVSS) business. Following the close of the transaction, the Permira Funds will create a new, rebranded company focused on developing and delivering video solutions for the Pay-TV industry.
I feel very positive about this announcement for many reasons: it is great for our customers, our employees, and for Cisco.
Cisco’s strategy is focusing on our five key areas of networking, multi-cloud, security, data, and collaboration. Given this strategic direction, it is the right time for the SP video group to be a stand-alone company. I believe it will be very successful, and it will be focused solely on growth in this marketplace.
Another positive factor is that Dr. Abe Peled has agreed to become the chairman of the new company. As you may remember, Abe was formerly the CEO of NDS. He knows our customers well, he knows the segment well, and he will be a great steward to the board and to the business.
Permira will acquire a market leading portfolio that spans the video delivery value chain with solutions including Infinite Video Platform, cloud DVR, video processing, video security, video middleware, and services.Cisco will retain the video and media technology related to our core business in networking, multi-cloud, security, data, and collaboration.
I’m very pleased to say that one of the major reasons for the selection of Permira is the belief that they are the right investor to benefit our customers and employees. At the same time, Cisco will be able to clearly focus on its core priorities.
We look forward to our ongoing Service Provider market innovations in mass-scale networking, automation, optical, optics, cable access, and mobility. Combining these innovations with Cisco’s portfolio of go-to-market security, collaboration, IoT, and professional services, we will continue to enable service providers, media and web companies to reduce cost and complexity, help secure their networks, and to grow revenue.
We remain dedicated to the Service Provider business and to our Service Provider customers, as Chuck Robbins notes in today’s news release.
I have spent much of my career in the media and video industry – it holds a special place for me. I am very happy for all parties about this announcement, and I hope you share my enthusiasm for this important change. It is a good day for the Service Provider video business, for our SPVSS employees, for our customers, and for Cisco.