Cisco is selling its service provider video software solutions (SPVSS) business as it looks to focus on networking, multi-cloud, security, data and collaboration going forward.
Private equity firm Permira will create a new company focused on the creation of video services for the television industry. The portfolio will include Cisco's Infinite Video Platform, cloud digital video recording, video processing, video security, video middleware, and services groups.
The chairman of the as-yet-unnamed new firm will be Abe Peled, former CEO of NDS, which Cisco acquired in 2012 to bolster its video business.
Cisco video business
"This is a unique opportunity to lead and shape the video industry during its transition with the flexibility as a private company," said Peled. “The new company will have the scale, technology innovation, and world-class team to deliver outstanding go-to-market execution, customer engagement, and new end-user experiences.
“Cisco has built a profitable business in the video space with innovations to capitalize on IP distribution and cloud-based services. These combined assets provide a significant new opportunity for the new company.”
Cisco will retain the video and media technologies related to its core area of business and believes it’s the right time to spin off the business. It will continue to maintain a working relationship with the new firm going forward.
"We are proud of our innovation in video and the customer momentum that the Service Provider Video group has built," said Chuck Robbins, Cisco CEO. "With the leadership team and Abe as Chairman, the new company is well-positioned to drive this work forward and continue to deliver the solutions that meet the current and future needs of service provider video customers.
“Service providers remain a key customer segment for Cisco, and we look forward to continuing to partner with them to deliver new revenue-generating services and experiences."
In 2015, Cisco sold its connected devices division to French media firm Technicolor.