BoomTown has been an unabashed fan of Pure Digital’s Flip digital video cameras since we debuted them at the D: All Things Digital conference in 2005.

And I have used the nifty device on this site since for my shaky-tastic video extravaganzas.

Yes, Pure Digital’s CEO Jonathan Kaplan (pictured above) is to blame!

Now, Kaplan has gone and sold Flip off to Cisco (CSCO) for $590 million in stock.

Sources said that Pure Digital–this corporate name will go by the wayside, by the way–had also chittered-chatted with Sony (SNE) and Hewlett-Packard (HPQ) about such a possibility.

That’s pretty good company for Pure Digital, considering it started as a white-label product, shrink-wrapped for theme parks and drugstores.

But the simplicity of its line of relatively inexpensive cameras, including the recently released Mino (seen below, and also sold in a high-definition version), has made it a huge consumer success, which is no easy task in the devices arena.

With Flip software, a user can plug the unit into a USB port of a computer to upload digital video easily. Flip models cost anywhere from $100 to $299.

Spot-on simplicity and a no-brainer feel have made them into the most popular such devices around, and in a very short time.

But, although it got $68.2 million in funding since its founding in 2001, taking all that innovation and success and truly turning it into a global brand was a much longer and more expensive slog for the San Francisco start-up.

Hence, a sale to the bigs.

Pure Digital is probably a good fit for Cisco, which has been trying to turbocharge its consumer-focused business, especially in home networking, and the move is a clear step in that direction.

In the integration, Cisco has made the Flip team part of ypuCisco’s Consumer Business group, and Kaplan will become general manager of the combined organization.

What comes next for Flip could be interesting, including the addition of social-networking and streaming features, which would dovetail well with Cisco’s other investments in consumer networking.

But most of all, it’s a nice ending to a very sharp company that makes a great product. Introducing a new consumer electronics device into the world is no small task and, clearly, Flip deserves the much bigger stage it is set to get.

Here’s my video interview with Kaplan, about Flip’s history and future:

Pure Digital, the maker of the popular Flip digital video cameras, has sold itself to Cisco (CSCO) for $590 million in stock.

The deal, which had been rumored last week by TechCrunch, was announced this morning by Cisco.

The innovative San Francisco-based start-up has made it big from its modest roots as a white-label digital video camera shrink-wrapped for themes parks and drug stores.

But the simplicity of its line of relatively inexpensive cameras, including the recently released Mino HD, has made it a huge consumer success, which is no easy task in the devices arena.

Using its own software, a user can plug the Flip into a USB port of computer to upload digital video easily. Flip models cost anywhere from $100 to $299.

Cisco has been trying to turbocharge its consumer-focused business, especially in home networking, and the move is a clear step in that direction. It is better known for its business making hardware and software that powers the plumbing of the Web.

Although it used stock in buying Pure Digital, Cisco has a $29 billion pile of cash. Recently, I wrote a piece about how a lot of tech companies, with big hordes of money, will soon be buying up a lot of the most promising tech start-ups.

The first commercially-branded Flips were, in fact, introduced at the third D: All Things Digital conference in 2005 by CEO Jonathan Kaplan (pictured here at D3.)

In an email to BoomTown this morning, Kaplan was happy with the outcome, because no matter its success, taking Flip to the next level is not easy:

“We’re thrilled by the partnership. Cisco shares my vision for capturing and sharing simple, accessible, and high-quality video to the mass-market consumer. Now we can deliver that ideal on a global basis.”

Cisco said that “upon the close of the acquisition, the Pure Digital team will become part of Cisco’s Consumer Business Group, which includes Linksys® by Cisco® home networking, audio and media-storage products. Kaplan will become general manager of the combined organization,” reporting to Ned Hooper, SVP of Corporate Development and Consumer Groups.

He and his team will also get a $15 million in retention-based equity incentives.

The sale to Cisco is a big win financially overall. Pure Digital got another $40 million in additional funding in mid-2007, from investors Morgan Stanley Principal Investment, Heights Capital Management and AllianceBernstein, who joined initial investors Sequoia Capital and Benchmark Capital.

It had previously gotten $28 million in 2004 from Sequoia and Benchmark, as well as Crescendo Ventures, Steamboat Ventures and Focus Ventures. It was founded with $200,000 in seed funding in 2001.

And, more to the point, Flip cameras have been used by me for nefarious interviewing of scared Web execs since our site’s launch. In fact, I have been so bizarrely enamored with the Flip that I even did a video of my many old Flips meeting the new high-definition Mino last November.

Here is that Felliniesque effort:

And here’s the full press release from Cisco about the deal:

Cisco Announces Intent to Acquire Pure Digital Technologies, Makers of Flip VideoTM Networking Leader Adds Popular Flip Video Solutions to Consumer Portfolio Photos

SAN JOSE, Calif.–March. 19, 2009–Cisco today announced its intent to acquire privately held Pure Digital Technologies Inc. San Francisco-based Pure Digital, creator of the best-selling Flip VideoTM brand, is a pioneer in developing consumer-friendly video solutions with mass-market appeal.

“The acquisition of Pure Digital is key to Cisco’s strategy to expand our momentum in the media-enabled home and to capture the consumer market transition to visual networking,” said Ned Hooper, senior vice president of Cisco’s Corporate Development and Consumer Groups. “Pure Digital has revolutionized the way people capture and share video with Flip Video. This acquisition will take Cisco’s consumer business to the next level as the company develops new video capabilities and drives the next generation of entertainment and communication experiences.”

Pure Digital’s Flip Video has sold more than 2 million units and quickly demonstrated market appeal in the United States by making video simple, accessible and fun. All Flip Video products come equipped with FlipShare, a best-in-class software that allows users to easily organize and edit videos and then share them instantly on YouTube, MySpace and other popular sharing Web sites.

“Flip Video puts the power to instantly capture, edit and share video into the hands of everyday consumers,” said Jonathan Kaplan, chairman and CEO of Pure Digital. “By combining forces with Cisco, we join a company that shares our passion for video and whose global scale and tremendous technology expertise we expect will enable us to quickly expand and enrich the Flip Video experience.”

Upon the close of the acquisition, the Pure Digital team will become part of Cisco’s Consumer Business Group, which includes Linksys® by Cisco® home networking, audio and media-storage products. Kaplan will become general manager of the combined organization, reporting to Hooper.

The Pure Digital acquisition exemplifies Cisco’s “build, buy and partner” innovation strategy to move quickly into new markets and capture key market transitions. 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.

As you might know from Katherine Boehret’s review of Pure Digital Technologies’ newest Flip today, there is now a high-definition version of the popular digital video camera.

Boehret mostly liked the new $230 Flip MinoHD, noting:

If you’re in the market for a simple camcorder that records high-quality video, the Flip MinoHD is definitely worth $50 more than the regular Flip Mino. But don’t say I didn’t warn you so when you’re bummed out by the screen’s still-small size and its inability to share true HD footage via the FlipShare software.”

Walt Mossberg and I demoed San Francisco-based Pure Digital’s first effort at our third D: All Things Digital in 2005.

And BoomTown has been using some version of the Flip for the column’s videos since the site started almost two years ago to make our jiggly masterpieces about the tech scene.

Thus, here is a video where my old Flips meet the newest digital video recorder in town:

But to the style-conscious set, the Flip looked like a clunky Fisher-Price toy — especially when compared with a sleek, new iPod or more-sophisticated digital cameras — and was too thick to comfortably slip into a pocket. Last fall, Pure Digital introduced an enhanced version: the Flip Video Ultra, but its biggest aesthetic difference was new orange, pink and green colors.

Today, the company will begin sales of its $180 Flip Video Mino (pronounced “minnow”), the hippest offering yet from Pure Digital. This 60-minute Flip includes many firsts for the company: rechargeable batteries; touch-sensitive buttons rather than old-school, push-down buttons; and a thinner build that measures 40% smaller, overall. The Flip Mino is also the first one in the family to enable publishing to MySpace (NWS); prior software limited Web-site sharing to YouTube (GOOG) and AOL (TWX) Video.

I’ve been using a glossy, black Flip Mino (it also comes in white) for the past two weeks and it looks much cooler than older models. Its newly positioned USB adapter pops up from the top of the camera like something from a Swiss Army Knife. The Mino offers features such as the ability to lock the delete button, so no one accidentally deletes your videos, and mute all camera sounds, so as to record silently during quiet moments like wedding ceremonies or speeches.

I brought it along with me almost everywhere I went because of its small size and light weight, even fitting it into a thin clutch purse with a cellphone and BlackBerry (RIMM). I used the Mino in various situations ranging from bright, scenic outdoor settings to indoors while eating dinner in a candle-lit restaurant. Overall, I was pleased with the sound and picture quality of the Mino, and I found its built-in software, which automatically starts when the camera plugs into your Mac (AAPL) or Windows (MSFT) PC, to be a pleasure to use.

Today, Pure Digital Technologies introduced its $180 Flip Video Mino, a thinner, more stylish version of its point-and-shoot camcorder.

It took just a few minutes to trim excess footage from my videos before saving them to my computer or sharing them with friends and family. Another way to share videos from the Flip Mino is via Pure Digital’s server, which sends emails with embedded video links, saving upload and download time on both ends. Though I didn’t publish any of my videos on a public Web site, AOL, MySpace and YouTube were just one step away.

The Flip Mino’s touch buttons, while stylish, were difficult to use at first. I missed the tactile feel of physical buttons as I tried to hold this small video camera and press the zoom buttons using just one hand. The new, touch-sensitive buttons weren’t as satisfying and stable to use, and I pressed them accidentally more than a few times. For instance, the Zoom Out button is directly below Record, making it easy to mistakenly touch it. After about a week of using the Mino, I grew more accustomed to using these new touch buttons, but it shouldn’t take so long to make the adjustment.

Just looking at the Flip Mino’s fresh new exterior makes it hard not to think about the things that this redesigned camcorder is still lacking, like a larger viewing screen (the Mino screen is 1.5 inches, no larger than that of the Flip Ultra), high definition video and wireless sharing capability. These features would likely raise the price and/or tax the battery, and many users of the Flip flock to it for its low price and simplicity. Still, Pure Digital says that it will offer HD video and a larger screen on a product within a year, and is looking into features that might include wireless transferring.

I grew fond of the Mino’s rechargeable battery. Whenever I plugged this gadget into my computer to transfer videos, my Mino charged up via USB without me having to think about it. A full charge lasts four hours and recharging a dead battery takes about three hours.

Pure Digital says that the sound quality and lighting are improved in this model. Like previous models, this Flip records in 640×480 pixels at 30 frames per second.

The Mino didn’t have a problem with lighting in most situations; indeed it did a nice job of capturing images of my family sitting around a table in a restaurant with little more than candlelight to brighten the picture. It doesn’t use a flash or a built-in light, but instead uses automatic sensors to adjust to various levels of light.

This svelte camcorder seemed to handle noise more evenly than I remembered in prior Flip models. It didn’t make my voice sound unbearably louder than everyone else’s, even though I was closest to the camera’s microphone, yet it managed to detect voices across the room. I did have some trouble on a windy day: While recording a quick video of a golf course in San Diego, wind audibly muffled my voice during a few moments in the video.

Along with the delete-lock and sounds-off settings, this Mino has a few other tricks up its sleeve. Each of the touch-sensitive buttons is designed to glow only when usable, so as to better help people who might not know which buttons to press while using this camcorder. For example, only the zoom buttons glow while recording since the other buttons (volume, play/pause and delete) can’t function in this setting.

Shortcuts built into each button provide more functions: Holding the play/pause button down will set the playback mode to play all videos on the Mino; holding the seek ahead or seek back buttons while watching a video will fast-forward by seconds within that video; pressing the record button as the camera starts up opens up the settings menu.

In conjunction with the Flip Mino’s introduction Wednesday, prices of the former Flip Ultra model will drop to $150 for the 60-minute model. The Flip Ultra 30-minute model will be phased out, as will the Flip Classic, which will cost $130 for a 60-minute unit.

Though the Flip Mino’s touch-sensitive buttons look great, they aren’t as functional as they needed to be. But if you really want a sleek, hip-looking gadget, you’ll learn to adjust to these new buttons. No matter which Flip you choose, Pure Digital’s software changes the way people capture and share videos, and that’s a great thing.

Edited by Walter S. Mossberg

• Email mossbergsolution@wsj.com