Networking provider Cisco will buy ExtendMedia, a provider of software-based content management systems, for an undisclosed sum.
The deal, due to be finalised early next year, will enable Cisco to help service providers deliver IP video.
The move from traditional broadcast technologies for video and television content to the internet has long been expected and this acquisition will help Cisco compete in this market.
"As consumers expect multi-screen engagement, service providers are enhancing their infrastructure to manage and deliver video to any device," said Enrique Rodriguez, senior vice president and general manager of Cisco's Service Provider Video Technology Group.
"ExtendMedia will strengthen Cisco's position in the delivery of IP video services by enabling service providers to provide a more interactive and personal experience."
In May Cisco announced that it will acquire CoreOptics, a designer of digital signal processing solutions for high-speed optical networking applications.
This will enable Cisco to equip customers with 100Gbit/s transmission technology, which will help meet the bandwidth-hungry demands of IP-based video distribution.