In a move toward the consumer space, Cisco Systems has inked a definitive agreement to buy privately held on-demand television solutions provider Arroyo Video Solutions Inc. for $92 million in cash.

Upon close of the transaction, expected in Q1 fiscal 2007, the Arroyo team and product portfolio will be integrated into Cisco's cable and video initiatives group, within the group's service provider organization.

"The entertainment industry is going through a major shift while consumer desire for personalized on-demand service is on the rise," Michelangelo Volpi, Cisco's senior VP and general manager of the routing and service provider technology group, said in a statement. "With the addition of Arroyo's innovative software, which offers flexibility in content delivery, service providers will be in a position to serve content how, when and where consumers want it."

Perhaps as important as the technology gain are two specific executive gains Cisco will see from the acquisition. Joining Cisco from Arroyo will be industry leaders Drew Major, an original founder of Novell, and Paul Sherer, former CTO at 3Com.

The week is young, but multi-million dollar acquisitions are in the air already: Monday, Qualcomm announced the $18 million dollar acquisition of Qualphone, while investment firms Bain Capital and Apax Partners have signed on to a consortium acquiring a majority stake in the semiconductor division of Royal Philips Electronics.