SAN JOSE -- "It is extremely unlikely for us to ever do a large acquisition. My view is, most all of them fail." -- Cisco Systems CEO John Chambers, August 2005

"Extremely unlikely" just happened. Cisco agreed Friday to buy Scientific-Atlanta Inc. in a $6.9 billion deal that would create a one-stop shop for sending TV over the Internet.

The deal has been approved by the boards of both companies and still needs customary approvals. It is expected to close by late April.

The acquisition is expected to help fuel the revolution in how TV is distributed and watched. Cisco senior vice president Mike Volpi said, "Over the next two or three years, we are going to see a dramatic change in the landscape, where video-over-broadband infrastructure becomes the centerpiece of investments that service providers make and the expectations that consumers have."

"Today's announcement represents much more than an exciting opportunity for Cisco," said John Chambers, Cisco's chief executive. "It literally completes a large part of our quadruple play as data, voice, video and mobility converge."

Scientific-Atlanta has about 7,500 employees and posted $1.91 billion in sales in fiscal 2005.

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