Cisco Systems plans to buy Raleigh-based Inlet Technologies for $95 million, as the technology giant bulks up its online video business.
Inlet's digital-video tools are used by broadcasters, online content companies and other customers to convert content into digital format. That makes it easier and cheaper to distribute over the Internet.
Cisco, the California company with a large campus in Research Triangle Park, has been buying smaller firms in recent years to add promising new products.
The deal's total price also will include retention-based incentives, and Inlet employees will join Cisco's Service Provider Video Technology Group, Cisco wrote in a prepared statement.
The deal is expected to close in the first half of this year.
Inlet's investors include Capitol Broadcasting, the Raleigh-based parent of WRAL, the Durham Bulls and other holdings.