Cisco to Buy V-Bits

Cisco Systems Inc. agreed to buy closely held V-Bits Inc. for $128 million in a deal that would allow it to sell equipment that lets cable companies offer digital video. Cisco did not disclose revenue figures for V-Bits, a start-up with a staff of 30. Both companies are based in San Jose. Cisco closed up $4.25 at $83.75 on Nasdaq.