WebProNews

Cisco's Linksys division will acquire Denmark-based KiSS Technology for $61 million USD in cash and stock.

The deal becomes the second one made for Linksys by Cisco; the company acquired Internet phone maker Sipura Technology in April.

But this deal poises Linksys, known for its home consumer networking products like wireless routers, more deeply in the consumer entertainment market. According to a press release, KiSS makes DVD players and recorders capable of being a conduit for video on demand.

The concept has consumers buying a networked device for their home, and then purchasing a either a monthly subscription to bring content to that device for playback at home, or buying a single movie at a time.

Recently, Intel announced a partnership with Oscar-winning actor Morgan Freeman to provide first-run movies via digital delivery over the Internet. Perhaps Cisco sees a need to compete with Intel on future demand for online video content.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.