Cisco Systems Inc. on Friday said it would buy Scientific-Atlanta Inc., a leading maker of cable-television set-top boxes, for $6.9 billion, moving the Internet equipment giant into the home entertainment market.

The world`s largest maker of the products that direct Internet traffic, Cisco with this move vaults into the battle among cable, satellite and telecommunications companies to be a one-stop shop for telephone, video and Internet services.

The deal has been approved by the boards of both companies and is expected to close next spring, it said.

Reuters
sections: Economics, World News