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Cisco Buying Scientific-Atlanta

Computer network giant Cisco Systems announces that it has signed an agreement to acquire cable television set-top box manufacturer Scientific-Atlanta for $ 6.9 billion. Cisco offers $ 43 a share for Scientific-Atlanta.

"Video is emerging as the key strategic application in the service provider triple-play bundle of consumer entertainment, communication and online services," said John Chambers, president and chief executive officer of Cisco Systems, as saying.

"This deal makes sense as telecom continues to change," says telecom analyst Jeff Kagan. "As telephone companies and cable TV companies gear up to compete, it`s all about the broadband line and all the services they can deliver to customers in all the different ways."