Cisco Continues Its Shopping Spree, Buys Chinese Set-top Box Business

Cisco Systems (s CSCO) is going shopping again: It is buying the set-top box business of DVN Holdings, a company that is listed in Hong Kong and has major IPTV-related operations in China. Cisco recently announced its decision to buy video hardware maker Tandberg and 4G wireless hardware maker Starent for roughly $3 billion each. In comparison, this is a tiny deal: Cisco will pay up to $44.5 million for the set-top box business of DVN, the company said in a press release today. Approximately $17.5 million will be paid up-front, with an additional maximum amount of $27 million to be paid over four years based on the achievement of specific sales milestones. Cisco is a major player in the set-top box market in the U.S., thanks to its successful acquisition of Scientific Atlanta. By buying DVN’s set-top box business, Cisco is extending its reach into China, one of the key overseas markets it has earmarked for growth.