Mumbai: Network solutions provider Cisco Systems Inc is acquiring video-on-demand software maker Arroyo Video Solutions Inc for $92 million as it seeks to increase its presence in the consumer entertainment market.

Arroyo's software, that allows video servers to connect, would give viewers greater choice and flexibility in selecting video on demand, and help Cisco's phone and cable carrier clients offer more personalised services, such as tailored advertisements, the company said.

Cisco plans to develop Arroyo into a networked digital video recorder, allowing viewers to watch anything at any time. The technology will also allow targeted advertising.

Arroyo already has cable companies as customers and the acquisition will bring Cisco a step closer to streaming television programming, video and music on any device people want.

Cisco expanded into the consumer electronics market with the acquisition of wireless home router maker Linksys in 2003 and the more recent purchase of cable set-top box maker Scientific Atlanta.

The acquisition of Arroyo will further improve Cisco's ability to serve the growing market for digital movies, music, television and telephone services run over networks and can be watched on several devices at any time.

Cisco, the San Jose-based networking giant, provides technology for sending data over the internet and earns most of its revenue from providing network gear for businesses and telecommunications companies.

The acquisition of Arroyo is due to close in Cisco's first quarter of fiscal year 2007, which ends in late October, the company said.