Linksys buys Keep it Simple for $61m

Linksys has agreed to acquire Danish consumer electronics manufacturer Keep it Simple Solutions (Kiss) in a $61m cash and stock deal.  

Kiss develops networked consumer electronics devices including DVD players and digital video records. The firm sells its products only in Europe.

"Kiss has emerged as a leader in networked video and audio products in Europe and we hope to use that expertise to expand worldwide," said Charles Giancarlo, chief technology officer at Linksys' parent company Cisco.

Linksys is a division of Cisco that targets consumers and small businesses with networking gear and media adapters. The company plans to use the Kiss technology platform to further expand its line of networked consumer devices.

Linksys is the largest vendor of media adapters that allow users to access music and images stored on a desktop PC on a television through a wireless connection. Such adapters could offer internet television and video on demand services in the future.

The market for networked entertainment reached $3.9bn in 2004, according to figures from market research firm In-Stat, and is expected to grow to $16.1bn by 2009.

Kiss was founded in 1994 and has 65 employees. Linksys will continue to support and sell Kiss' current products in Europe, and plans to expand to other geographies in the future.