Cisco Offers $3 Billion for Video Equipment Firm Tandberg

Authored by Mark Hefflinger on October 1, 2009 - 8:06am.

San Jose, Calif. - Networking giant Cisco (NASD: CSCO) Systems announced on Thursday that it has offered $3 billion in cash to acquire Tandberg, a maker of video communications equipment.

The offer represents an 11% premium on the previous day's closing price of Oslo-based Tandberg's shares.

Tandberg's video networking hardware is used for videoconferencing and related applications.

"Cisco and Tandberg have remarkably similar cultures and a shared vision to change the way the world works through collaboration and video communications technologies," said Cisco chairman and CEO John Chambers.

"Collaboration is a $34 billion market and is growing rapidly -- enabled by networked Web 2.0 technologies. This acquisition showcases Cisco's financial strength and ability to quickly capture key market transitions for growth."

Upon completion of the deal, expected in the first half of 2010, Tandberg CEO Fredrik Halvorsen will become head of Cisco's new TelePresence Technology Group.

http://online.wsj.com/article/BT-CO-20091001-710956.html