U.S. network equipment maker Cisco won unconditional EU regulatory approval on Tuesday for its $5 billion takeover of TV software developer NDS, its largest ever, which will reinforce its presence in the video communications market.<\/p>\n
NDS, which is 51 percent-owned by private equity fund Permira and 49 percent by News Corp, makes software that allows cable and satellite TV companies to deliver encrypted content through televisions and other devices.<\/p>\n
Cisco has said NDS’ flagship product, VideoGuard, which is installed on home TVs via smartcards in set-top boxes, complements its video offerings because it allows television operators to extend their pay-TV services to other media devices while ensuring content cannot be hacked by non-paying customers.<\/p>\n
Reuters reported on July 13 that the deal would be cleared by the European Commission without any conditions.<\/p>\n
The European Commission said the deal would not raise competition concerns.<\/p>\n
“The Commission’s investigation confirmed that the merged entity would continue to face competition from a number of strong competitors and that customers, namely pay-TV providers, would continue to have alternative suppliers in all markets concerned,” the EU watchdog said in a statement.<\/p>\n
NDS’ users include BSkyB and Sky Italia in Europe, and Cablevision Systems Corp, Comcast Corp and Rogers Communications Inc. in North America.<\/p>\n
The acquisition is Cisco’s biggest after its $3.3 billion buy of Norwegian conferencing company Tandberg in 2009.<\/p>\n
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