Rumor mill: Cisco looking to buy NDS Group Holdings for $5B

UPDATED: Cisco has purchased NDS for $5 billion.

Cisco (Nasdaq: CSCO) is negotiating to acquire pay-TV software maker NDS Group Holdings, an Israeli newspaper reports.

According to CalcalistCisco is offering $5 billion for the company, which supplies software to DirecTV (Nasdaq: DTV), British Sky Broadcasting Corp., Canal Plus and other pay-TV operators. A second paper, The Market, said the deal could be announced today.

NDS software addresses OTT solutions, helping to deliver content to any device, including set-top boxes, and helps service providers offer an enhanced user experience, as well as offering content and service protection. In August, it struck a deal to support DirecTV's over-the top play.

Billionaire Rupert Murdoch's News Corp. (Nasdaq: NWSA) and London hedge fund Permira Advisers LLP are co-owners of the company, which in December filed for an IPO that sought to raise up to $100 million.

Spokesmen for all three companies declined comment.

Cisco has bought a number of companies in recent months to support its Videoscape product.

For more:
- see this Bloomberg report

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