Is Cisco's true cost purchasing Pure Digital $747M?

According to the Cisco announcement of its purchase of Flip video maker Pure Digital:

Under the terms of the agreement, Cisco will pay approximately $590 million in stock in exchange for all shares of Pure Digital. In addition, Cisco will provide up to $15 million in retention-based equity incentives for continuing employees. The acquisition is subject to various standard closing conditions and is expected to close in the fourth quarter of Cisco's fiscal year 2009. The acquisition will be accounted for in accordance with generally accepted accounting principles.

Yahoo! Finance reported that Cisco stock closed at $16.23 per share on the day of the purchase announcement - Mar. 19, 2009: Dividing Pure Digital's announced purchase price of $590 million in Cisco stock by the Cisco stock closing price of $16.23: $590 million divided by $16.23 = 36,352,433 Cisco shares being exchanged for all the shares of Pure Digital. According to Cisco's most recent Form 10-Q (page 24) filed with the U.S. Securities and Exchange Commission on Feb. 17, 2009: The weighted-average price per share cost of repurchased Cisco stock is $20.57 Multiplying $20.57 per share times 36,352,433 = $747,769,546.81 So it appears that Cisco's true cost in purchasing Pure Digital is $747 million, $157 million more than announced by Cisco.

Related story: Cisco buying Flip video maker Pure Digital? I can't go for that (no can do)

What do you think, am I totally whacked in my assumptions? BradReese.Com Cisco Refurbished Contact: Brad Reese Twitter: Call Toll Free 866-864-0506 or International 850-364-4115 Where's Cisco CEO John Chambers today? - Updated Daily

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