The popular Flip-branded video cameras are compact, hip and affordable, especially the Flip MinoHD (4GB memory), which costs only US$230 but shoots 1280 x 720 H.264 videos.

CORP TALK: Cisco Systems Inc. has completed its purchase of San Francisco-based Pure Digital Technologies Inc., creator of the best-selling Flip Video brand. The acquisition is a key part of Cisco’s strategy to expand into the media-enabled home and capture the consumer market transition to visual-based networking.

Pure Digital’s Flip Video cameras has sold more than 2 million units worldwide as the devices, which are based around CMOS image sensors and feature fixed lenses, built-in flash memory and priced from US$130 and up, helps make video simple, accessible and fun.

All Flip Video products come with FlipShare, a software that lets users organize and edit videos, then share them instantly on YouTube, MySpace and other popular sharing Web sites.

Under the terms of the agreement, Cisco will pay approximately US$590 million in stock in exchange for all shares of Pure Digital. In addition, Cisco will provide up to US$15 million in retention-based equity incentives for continuing employees.

The Pure Digital team will become part of Cisco’s Consumer Business Group, which includes Linksys home networking, audio and media-storage products. Jonathan Kaplan, chairman and CEO of Pure Digital becomes senior VP and General Manager of the combined organization, and will report to Ned Hooper, senior VP for Cisco Corporate Development and Consumer.