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Cisco to Acquire Inlet Technologies

Cisco announced that it plans to acquire Inlet Technologies for roughly $95 million.

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Edited press release follows:

Cisco Announces Intent to Acquire Inlet Technologies

Acquisition Will Support Cisco’s Videoscape Strategy

SAN JOSE, Calif. – Feb. 4, 2011 – Cisco today announced its intent to acquire privately-held Inlet Technologies, a leading provider of Adaptive Bit Rate (ABR) digital media processing platforms. Based in Raleigh, N.C., Inlet will strengthen the capabilities of Cisco’s Videoscape TV platform, allowing service and content providers to deliver compelling video experiences to any device over any Internet Protocol (IP) network.

“Service and content providers have a tremendous opportunity to deliver exciting video experiences as media consumption increases across mobile, desktop, and smart devices,” said Enrique Rodriguez, senior vice president and general manager, Cisco’s Service Provider Video Technology Group. “Cisco’s Videoscape platform will play a key role in reinventing the TV experience, and the acquisition of Inlet will enable our customers to leverage the network as a platform to deliver innovative video experiences to consumers on any device.”

Cisco Videoscape is a comprehensive TV platform for service providers that brings together digital TV and online content with social media and communications applications to create a truly immersive home and mobile video entertainment experience. Inlet’s advanced ABR technology, which is used in streaming multimedia over managed and unmanaged networks, adapts the quality of the video stream based on real-time network conditions.

Inlet brings to Cisco a strong team that understands the complexities of delivering ABR video over IP networks to any device. Upon the close of the acquisition, Inlet employees will be integrated into Cisco’s Service Provider Video Technology Group.

Under the terms of the agreement, Cisco will pay approximately $95 million in cash and retention-based incentives in exchange for all shares of Inlet. The acquisition is subject to various standard closing conditions and is expected to be complete in the first half of calendar year 2011.

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Frequently Asked Questions

Q: Why are you acquiring Inlet?
A: Cisco chose Inlet because it has demonstrated success with key Tier-1 Service Providers. Inlet brings a strong development team that understands the complexities of delivering ABR video over IP networks for any device. Cisco has developed a successful working relationship with Inlet over the past 2 years, and expects seamless integration with existing engineering teams. Together with Inlet, Cisco will uniquely provide Service Providers and Content Owners the ability to leverage the network as a platform to deliver video processing that enables the optimum end-user experience.

Q: Will this transaction shift Inlet’s attention away from us?
A: Cisco and Inlet share a common culture – one of the key attributes being a relentless focus on customer success. Inlet has a demonstrated ability to manage multiple Tier-1 relationships. We expect to preserve this aspect of the culture on customer focus and build upon it as we scale the business. We will continue to operate as independent entities until the transaction closes.

Q: Which products will you continue to supply?
A: Cisco is committed to ensuring the success of Service Providers and will work to ensure that Service Providers continue to have access to all products needed for their networks.

Q: What happens to existing purchasing agreements and maintenance contracts?
A: Cisco is first and foremost committed to customer success. Cisco intends to work with customers to find a path forward that honors its obligations and creates a foundation for mutual success.