Cisco has agreed to plunk down a whopping $6.9bn for Scientific-Atlanta, hoping to take a major share of the set-top-box market and push video efforts.

The networking giant will pay $43 per share in cash for Scientific-Atlanta ($5.3bn) and swallow $1.6bn in debt. With the buy, Cisco acquires one of the more dominant set-top-box makers. In addition, it pushes well beyond the data center to touch consumers where they live.

With its previous Linksys acquisition, Cisco found one route to the consumer. This purchase, however, provides a more direct avenue for delivering content and services to the home.

Cisco plans to turn Scientific-Atlanta into a division of its Routing and Service Provider Technology Group. Scientific-Atlanta has 7,500 employees and reported revenue of $1.9bn in fiscal 2005.

Cisco expects the deal to close in its third fiscal quarter of 2006, pending standard approvals. ®

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