Networking gear maker Cisco plans to buy Pure Digital, the company behind the popular Flip Video camcorder, for about $590 million in stock.
San Jose, Calif.-based Cisco Systems Inc. said Thursday it is buying Pure Digital Technologies Inc. to expand its consumer business.
The Flip Video, designed to make it easy for people to capture and share videos, has sold more than 2 million units.
As part of the deal, Cisco says it will also provide up to $15 million in stock incentives for Pure Digital employees who stay with the company.
The deal is expected to close in Cisco's fiscal fourth quarter, which ends in July.
Copyright AP - Associated Press
