Cisco to buy Scientific-Atlanta for $7 bn - report

NEW YORK: Data and communications equipment maker Cisco Systems Inc. intends to announce the acquisition of Scientific-Atlanta Inc., the top U.S. maker of cable television set-top boxes, for $7 billion, the New York Times reported on Friday.

Citing people who had been briefed on the negotiations, the newspaper said the deal was approved by the boards of both companies after the stock market closed on Thursday.

It said the final price is expected to be around $5.3 billion because Cisco expects to acquire a cash balance of about $1.7 billion from Scientific-Atlanta.

Scientific-Atlanta would keep its current management, the paper said.

Spokeswomen for both companies declined to comment to the Times.

Cisco already has a strong foothold in the cable television market, and a takeover of Scientific-Atlanta would give it access to the cable set-top business and more expertise in video systems and software, a Gartner analyst said in a report earlier this month.

Cisco, the world's largest network equipment maker, is trying to find new technologies and businesses to spark higher revenue growth and in turn spur the company's stock into action.