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Cisco (CSCO) : Watch CSCO and its entry into China market

This news was out 2 days back.

Maybe it is because the market is falling and little attention is paid to it. Another reason is the acquisition size is small. However, I think the significance is huge.

From Reuters:

Cisco Systems, Inc. Announces Agreement To Acquire DVN (Holdings) Limited Set Top Box Business
Monday, 2 Nov 2009 06:30pm EST

Cisco Systems, Inc. announced a definitive agreement to acquire the set top box business of DVN (Holdings) Limited. Listed in Hong Kong with major operations in China. Under the terms of the agreement, Cisco will pay up to $44.5 million for the set top box business of DVN. Of this amount, approximately $17.5 million will be paid upfront, with an additional maximum amount of $27 million to be paid over four years based on the achievement of specific sales milestones. The acquisition is expected to close in the first half of calendar year 2010. In addition to the acquisition, Cisco has entered into a go to market alliance with the remainder of the DVN organization which will continue to be led by current DVN CEO Terry Lui in order to utilize the company’s middleware and advanced applications as well as integration and support services. The alliance will provide joint customers with unparalleled end to end capabilities through the evolution from basic digital broadcast to advanced interactive services.