Cisco looks to sell unit
Cisco Systems is seeking a buyer for its videosoftware unit, according to people familiar with the process, part of an effort to sharpen focus on the fast-changing network-infrastructure business.
The San Jose company is reportedly soliciting offers for NDS Group. A Cisco representative declined to comment.
CEO Chuck Robbins is trying to keep Cisco competitive as the networking business shifts away from the expensive, fixed-purpose machines and locked-down software that once dominated the industry — and helped Cisco become one of the biggest companies in tech. Shedding NDS, which Cisco acquired for about $5 billion in 2012, would speed its exit from technology used in traditional TV services after the sale of its connecteddevice business, the former Scientific-Atlanta, in 2015.
NDS products are used to send interactive content to television set-top boxes, digitalvideo recorders and mobile phones. It is part of Cisco’s service-provider video unit, which has reported declining revenue since 2014.
Robbins has been trying to jump-start growth by purchasing providers of online software and services.
The shift toward becoming a software provider that books recurring revenue has been more difficult than at other companies because Cisco has traditionally been paid up front for hardware, Robbins has said. The network-equipment maker hasn’t recorded annual sales growth of more than 10 percent since 2010.