Cisco originally bought NDS from private-equity firm Permira for around $5 billion, and is now unloading them back in the form of its Service Provider Video Software Solutions (SPVSS) unit for a reported fifth of the price, according to Bloomberg. The deal includes Cisco’s video security services, including smart cards and software solutions associated with conditional access security; cloud video platforms; and video middleware.

Permira plans to launch the assets as a new business. Abe Peled, former chairman and CEO of NDS and adviser to the Permira Funds, will serve as chairman of the new company.

"We are proud of our innovation in video and the customer momentum that the service provider video group has built," said Cisco CEO Chuck Robbins. "With the leadership team and Abe as chairman, the new company is well-positioned to drive this work forward and continue to deliver the solutions that meet the current and future needs of service provider video customers. Service providers remain a key customer segment for Cisco, and we look forward to continuing to partner with them to deliver new revenue-generating services and experiences."

Added Peled: "This is a unique opportunity to lead and shape the video industry during its transition with the flexibility as a private company. The new company will have the scale, technology innovation, and world-class team to deliver outstanding go-to-market execution, customer engagement, and new end-user experiences. Cisco has built a profitable business in the video space with innovations to capitalise on IP distribution and cloud-based services. These combined assets provide a significant new opportunity for the new company. I am thrilled to be working again in this area with Permira who is committed to innovation and support for our pay-TV customers, and look forward to the ongoing working relationship with Cisco in support of our mutual customers."