Cisco plans to purchase privately-held Inlet Technologies, a provider of Adaptive Bit Rate (ABR) digital media processing platforms, to strengthen its Videoscape TV platform.

Cisco Videoscape is a comprehensive TV platform for service providers that brings together digital TV and online content with social media and communications applications to create an immersive home and mobile video entertainment experience. Inlet’s ABR technology, which is used in streaming multimedia over managed and unmanaged networks, adapts the quality of the video stream based on real-time network conditions.

Upon the close of the acquisition, Inlet employees will be integrated into Cisco’s Service Provider Video Technology Group.

Under the terms of the agreement, Cisco will pay approximately $95 million in cash and retention-based incentives in exchange for all shares of Raleigh, N.C.-based Inlet. The acquisition is subject to various standard closing conditions and is expected to be complete in the first half of calendar year 2011.

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