A Flip video camcorder made by Pure Digital Technologies is seen in this picture taken in New York March 19, 2009. Cisco Systems Inc is buying digital camcorder-maker Pure Digital Technologies as it seeks to push further into the consumer market. The world's largest maker of computer networking equipment said on Thursday it would pay $590 million in stock to purchase all of privately held Pure Digital's shares. (Xinhua/Reuters Photo) Photo Gallery>>>

    SAN FRANCISCO, March 19 (Xinhua) -- In a move to further push into consumer products market, Cisco Systems Inc. on Thursday announced its intent to buy Pure Digital Technologies Inc., the maker of popular Flip video camera.

    The world's largest network equipment maker said it will pay about 590 million U.S. dollars in stock in exchange for all shares of privately held Pure Digital as well as 15 million dollars to retain Pure Digital's employees.

    The acquisition is expected to close in the fourth quarter of Cisco's fiscal year 2009.

    San Francisco-based Pure Digital has sold more than 2 million Flip video cameras, which cost from 130 dollars to 230 dollars each and can record up to 60 minutes of high-definition videos.

A Flip video camcorder made by Pure Digital Technologies is seen in this picture taken in New York March 19, 2009.  (Xinhua/Reuters Photo) Photo Gallery>>>

    The colorful Flip camera has built-in software that allows users to easily organize and edit videos and then share them instantly on YouTube and other popular sharing websites.

    "The acquisition of Pure Digital is key to Cisco's strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking," Ned Hooper, senior vice president of Cisco's Corporate Development and Consumer Groups, said in a statement.

    "This acquisition will take Cisco's consumer business to the next level as the company develops new video capabilities and drives the next generation of entertainment and communication experiences," he added.