Cisco Systems has reached an agreement to acquire Pure Digital for $590 million which will be paid in shares. Pure digital is the company which produces the low budget Flip Video Cameras. The company was founded eight years ago and has shareholders like Sequoia, Benchmark Capital and Steamboat Ventures, a venture capital group of Walt Disney.

In addition, Cisco will pay another 15 billion in securities, to 102 employees from Pure Digital to continue in the company. The Flip Video has been very successful since its launch in May 2007 and sold over two million units. The cameras, which costs between 150 and $ 230, allows 60 minutes of video recording and can connect to the PC via a UBS port. This makes uploading videos to websites such as Youtube very simple.

Cisco intends to win with this purchase is the presence in the consumer market and aims to develop new products for this area thanks to Pure Digital’s platform.