Cisco is reportedly set to acquire Pure Digital Technologies, the same company that brought to us the Flip Video line of low cost camcorders. The deal has reportedly been closed and was worth around $500 million.

Cisco has made a number of moves to reach out to consumers. It bought set-top box maker Scientific Atlanta and has started putting its Cisco name on the boxes. Its earlier purchase of router maker Linksys has has also helped Cisco become more of a familiar name with consumers. Most recently at the Consumer Electronics Show, it unveiled a new wireless home audio system to compete with equipment from Sonos.

The timing is not bad for Cisco, with the economy not only creating good acquisition opportunities but also because Flip’s cheap product offering can resonate even more with cash-strapped consumers.

And Cisco has also been pushing its video story in recent years, especially with its TelePresence line of high-def video conferencing gear. Having an easy-to-use camcorder can be another way to fill out that whole narrative, encouraging people to not only view video via Cisco’s network and products but also create it and share it.

(Source) SFGate.com