Cisco to buy Tandberg in US$3 billion video conferencing deal
Paul Milligan, October 1, 2009
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Cisco has agreed to buy Norwegian video conferencing manufacturer Tandberg for approximately $3 billion (17.2 billion kroner). The move comes as a surprise as both companies had been aggressively competing head-to-head for some time in the large scale Telepresence market. The acquisition will significantly extend Cisco’s range to provide cheaper systems for SMEs.
The purchase is Cisco’s first for a public company outside the U.S.
Cisco will pay 153.50 kroner a share in cash, 11 per cent more than Tandberg’s closing price in Oslo trading yesterday. The proposal was recommended unanimously by Tandberg’s board of directors. The acquisition is expected to close during the first half of calendar year 2010.
READ PETER LLOYD’S THOUGHTS ON CISCO BUYING TANDBERG HERE
CLICK HERE TO READ WHAT AV EDITOR BHAVNA MISTRY THINKS OF THE DEAL
Upon completion of the transaction, Tandbergs CEO Fredrik Halvorsen will lead the new TelePresence Technology Group, reporting to Marthin De Beer, senior vice president of Cisco’s Emerging Technologies Group.
Cisco CEO John Chambers and Halvorsen are to host a joint press conference in Norway later on this morning to discuss the full details.
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