Linksys, which secured the deal through parent company Cisco Systems, said the deal will enable it to develop and design a range of networked entertainment products.
Denmark-based KiSS was founded in 1994. Its 65 employees will be integrated with Linksys.
Earlier this year, KiSS launched the MediaMate, an IPTV set-top box. TV-2 Sputnik, a broadband service provider also based in Denmark, was the first to deploy the device.
"KiSS has emerged as a leader in networked video and audio products in Europe and we hope to use that expertise to expand worldwide," said Cisco CTO and Cisco-Linksys President Charles Giancarlo.