Cisco Systems earlier today confirmed it has purchased Pure Digital Technologies for $590 million in stock, wisely purchasing the maker of the popular Flip Video camera.
Rumors of a possible buyout began to surface a couple of weeks ago, though neither company publicly mentioned if a deal was in the works.
Although you may not be familiar with Pure Digital as a company, there is a high likelihood you've seen some out and about recording with their devices. Prices range from $100 up to $229, and owners can record from 30 minutes up to 60 minutes of video -- the company also has a Flip Mino HD device for 720p HD-quality recordings.
"The acquisition of Pure Digital is key to Cisco's strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking," Cisco Corporate Development and Consumer Groups Senior V.P. said in a statement.
Pure Digital's reported revenue was somewhere near $150 million in 2008, a drastic increase from the reported revenue of $50 million a year before.
The Flip Video cameras have been extremely popular, as they are small, portable, easy to use, and record decent videos. Pure Digital has sold more than two million units of its Flip Video, Ultra and Mino devices. The company is facing increasing competition from Sony, Toshiba, and other companies as the ultra portable camcorder market is exploding.
Cisco's investment in the company means it won't have to develop its own mini-video recorder, and will be able to begin marketing the products in ways that Pure Digital was unable to.
