Cisco to buy video surveillance firm for $51 mn

NEW YORK: Communications equipment maker Cisco Systems Inc. on Tuesday said it will buy privately held video surveillance company SyPixx Networks Inc. for $51 million in cash and stock options.

The Waterbury, Connecticut-based company makes technology that allows companies to connect their older security video systems to Internet-based networks without having to replace them, a Cisco executive said.

"Many of the traditional video surveillance systems are analog... Everything is put on videotapes," said Marthin De Beer, vice president of Cisco's Emerging Markets Technologies Group. "If you have to go back and (resolve) a problem or an investigation, it's a very time-consuming process."

Cisco said it expects to close the acquisition during the third quarter of its fiscal year.

The acquisition is Cisco's latest move in the video market. The company last week closed its $6.9 billion purchase of cable set-top box maker Scientific-Atlanta Inc., and plans to begin selling networked DVD players in the United States.

The company is targeting businesses such as airports, casinos, hotels, the public sector and banks, De Beer added.

He said the market could be worth as much as $2 billion in 2007, but that could rise to as much as $8 billion when factoring in systems integration, consulting and other professional services.