Network equipment maker Cisco Systems Inc plans to buy privately-held, digital video technology firm Inlet Technologies for $95 million, continuing to expand beyond its traditional routing and switching business.

Cisco said on Friday that it expects the deal to complete in the first half of 2011. Its offer includes cash and retention-based incentives, it said.

Inlet's products include software for live video streaming and digital encoding. Clients include Yahoo Inc, according to its website.

(Reporting by Ritsuko Ando)