Cisco to Buy Video-Software Firm NDS for $5 Billion

American networking equipment maker, Cisco has signed a deal to buy United Kingdom-based video software developer NDS Group Ltd. for $5 billion, the company's biggest deal in more than two years.

Under the terms of the agreement, Cisco will pay approximately $5 billion to acquire all of the business and operations of NDS, and the deal is expected to close during the second half of calendar year 2012, said the two companies in a joint press release.

NDS, based in Britain, is a leading provider of video software and content security solutions, enabling video providers to deliver a service that lets subscribers to view, search and navigate digital content anytime, anywhere and on any device.

Cisco said the acquisition will speed up its development of Videoscape, its own video platform for paid TV providers, and help it expand into emerging markets such as China and India.

Cisco first got into the video market in 2006 when it bought cable set-top box maker Scientific Atlanta for $6.9 billion.

Last year, Cisco took some "tough decisions" to preserve its profitability as the company suffered a slowdown in its main businesses of IP routing and switching and acknowledged mistakes in operational execution.

The company shut down its Flip Video camcorder business in April and announced it will cut 6,500 jobs in July.