SAN JOSE, Calif: Cisco Systems Inc. has announced that it had brought the Denmark-based KiSS Technology for $61 million in cash and stock. The deal is a major boost for Cisco's Linksys division and is expected to be formalized by the end of the first quarter early next year.
Cisco is hoping that the Linksys' Voice over Internet Protocol and other networking hardware would be benefited by the induction of the KiSS platform, which includes products such as DVD players and recorders. These recorders and DVD players can be networked with other devices and can also access the Internet.
In the announcement, Cisco said that the KiSS technology platform would be extended other consumer electronics products thus enabling Linksys to develop "a unique, networked entertainment product suite." The $61 million in cash and stock exchange would cover all the shares in the Hørsholm, Denmark-based KiSS technology. Charles Giancarlo, Cisco Chief Technology Officer and Cisco-Linksys president was elated at having closed the deal and said, "KiSS has emerged as a leader in networked video and audio products in Europe and we hope to use that expertise to expand worldwide." He added that as consumers demand access to digital entertainment inside and outside of their home networks, "networked entertainment devices will become an integral part of Consumer Electronics."
However, it was also categorically stated that Linksys would continue to sell the product portfolio of KiSS Technology in Europe. Further, Cisco still sees itself as an infrastructure provider and was not contemplating entering the consumer electronics market. "Kiss will be one element in connecting the Internet into the living room. We view the Kiss device as a good way to tie together elements of the wireless home. We are not going to get into the consumer electronics business," said Jamie Tsao, senior vice president of sales and marketing for Linksys.
Cisco also said that most of the 65 employees of KiSS would be integrated into its Linksys division after the agreement is finalized sometime before August 1 next year.
