8-KOther EventsExhibits & Filings

CISCO SYSTEMS, INC. 8-K Report, Corporate Update (Mar 15, 2012)

Filed March 15, 2012For Securities:CSCO

Summary

Cisco Systems, Inc. (CSCO) announced on March 15, 2012, its intention to acquire NDS Group Limited for approximately $5 billion. NDS is a prominent provider of video software and content security solutions crucial for service providers and media companies aiming to deliver and monetize video content. This strategic acquisition is expected to bolster Cisco's offerings in the digital entertainment and video delivery space. The transaction, approved by both companies' boards, is anticipated to close in the latter half of 2012, subject to regulatory approvals and other customary closing conditions. Cisco projects that the acquisition will be accretive to its Earnings Per Share (EPS) on a non-GAAP basis in the first full year post-completion, indicating a positive financial impact for shareholders.

Key Highlights

  • 1Cisco announces intent to acquire NDS Group Limited for approximately $5 billion.
  • 2NDS Group is a leader in video software and content security solutions for media and service providers.
  • 3The acquisition aims to enhance Cisco's capabilities in video delivery and monetization.
  • 4The deal has been approved by the boards of directors of both Cisco and NDS.
  • 5Closing of the acquisition is expected in the second half of calendar year 2012.
  • 6The transaction is anticipated to be accretive to Cisco's non-GAAP EPS in the first full year after closing.
  • 7The filing includes forward-looking statements regarding the expected benefits and financial impact of the acquisition.

Frequently Asked Questions

The main purpose is to strengthen Cisco's position in the digital entertainment and video delivery market by acquiring NDS's leading video software and content security solutions. This will enable Cisco to better support service providers and media companies in delivering and monetizing new video experiences.

Cisco plans to acquire NDS Group for approximately $5 billion, which includes the assumption of debt and retention-based incentives.

The acquisition is expected to be completed during the second half of calendar year 2012, subject to customary closing conditions, including regulatory reviews.

Cisco expects the acquisition to be accretive to its EPS (Earnings Per Share) on a non-GAAP basis in the first full year following the completion of the transaction.