Networking gear maker Cisco Systemssaid Thursday it plans to buy Pure Digital, the company behind the popular Flip Video camcorder, for about $590 million in stock.
San Jose, Calif.-based Cisco said it is buying Pure Digital Technologies Inc. to expand its consumer business as it develops "new video capabilities and drives the next generation of entertainment and communication experiences."
The Flip Video, designed to make it easy for people to capture and share videos, has sold more than 2 million units.
As part of the deal, Cisco said it will also provide up to $15 million in stock incentives for Pure Digital employees who stay with the company.
The deal, which comes less than two months after Cisco bought middleware technology company Richards-Zeta, is expected to close in Cisco's fiscal fourth quarter, which ends in July.
Cisco's shares were down about 2 percent Thursday.