Cisco Acquires Video Systems Company SyPixx

By Jessie Seyfer, San Jose Mercury News, Calif.

Mar. 8–Cisco Systems took a step into corporate surveillance Tuesday, announcing it was acquiring Connecticut-based video systems company SyPixx for $51 million in stock options and cash.

SyPixx, a privately held firm with 27 employees, makes software and encoding devices that allow businesses to put their video feeds onto their computer networks, where they can be managed along with e-mail and other applications.

Cisco said it considers corporate surveillance technology a market where the company hopes to expand with additional acquisitions, partnerships and in-house products. Cisco has added the technology, which it calls “physical security,” to its lineup of “emerging technologies.” Others include improving how communication systems talk to each other — such as ensuring police and fire personnel can communicate during an emergency — and building networks of data servers.

“We think this market has great potential,” said Marthin De Beer, vice president of Cisco’s Emerging Market Technologies Group.

The decision to buy SyPixx makes sense because it supports Cisco’s core business of producing routers and switches, which direct data on the Internet and over networks that are structured like the Internet, De Beer said. SyPixx products will allow Cisco’s business customers to put video feeds on their networks.

Retail businesses as well as government entities are potential customers, De Beer said. Cisco executives would not discuss SyPixx’s existing customers.

The acquisition is expected to close by late April.

Contact Jessie Seyfer at jseyfer@ mercurynews.com.

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