Cisco Systems Inc. said Thursday that it plans to acquire digital-television company NDS Ltd. in a deal valued at roughly $4 billion. Cisco expects the acquisition to accelerate delivery of its Videoscape platform. The deal will help grow the tech giant's capabilities in the service-provider market and expand its reach into emerging markets, such as China and India.

U.K.-based NDS, with more than 5,000 employees, develops software for delivering media content to various devices. Founded in Israel in 1988 and headquartered in London, NDS is 51% owned by private equity fund Permira and 49% by News Corp. It maintains a large research and development center in Jerusalem.

Technically the stock is close to its 20.4 USD resistance which will be tested for the third time. Moving averages are well oriented and 20-days moving average may give to the security the needed run-up to cross the resistance and focus on the 22 / 23 USD level.

A buying position would be engaged on the resistance crossing with an objective up to 24 USD. A stop loss will be engaged at 19.3 USD, below the short-term support.