Cisco Systems to acquire Arroyo Video Solutions

Cisco Systems to acquire Arroyo Video Solutions

Cisco Systems has said in a statement that they are going to acquire video-on-demand software maker Arroyo Video Solutions.

This deal could be worth as much as $92 million and it would boost the Cisco’s efforts to enter into the consumer entertainment market.

The company is a dominating player in the networking market providing hardware and software solutions to businesses and telecommunications companies. And they entered into the consumer electronic markets with its acquisitions of Linksys and cable set-top box maker Scientific Atlanta.

Michelangelo Volpi, senior vice president and general manager for Cisco’s routing and service provider technology group spoke on this decision: “The entertainment industry is going through a major shift while consumer desire for personalized on-demand service is on the rise.”

The deal is expected to be complete by Cisco’s first quarter of fiscal year 2007.