Cisco completes Tandberg deal
Paul Milligan, April 19, 2010
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Cisco has completed its $3.3bn deal to buy video conferencing manufacturer Tandberg. ‘Today we are celebrating a very important step for our customers in the journey to put people at the center of collaboration and change the way we work,’ said Marthin De Beer, senior vice president, emerging technologies business group, Cisco.
‘We strongly believe that telepresence – the next generation of videoconferencing – along with Cisco’s entire rich collaboration portfolio, powers this new way of working where everyone, everywhere, can be more productive through the pervasive use of video and face-to-face collaboration.’
The full Tandberg product line is now part of the Cisco TelePresence portfolio.
With the close of this transaction, Fredrik Halvorsen, the former CEO of Tandberg, becomes senior vice president and leader of the new TelePresence Technology Group within De Beer’s organisation. This newly-formed group includes three fully integrated businesses that will focus on endpoints, infrastructure and Cisco TelePresence cloud services.
Under the terms of the tender offer, and following the completion of the compulsory acquisition of shares, Cisco will have purchased all of the outstanding shares of Tandberg for 170 Norwegian kroner per share for an aggregate purchase price of approximately 19 billion Norwegian kroner or $3.3 billion. Cisco expects the acquisition to be dilutive to non-GAAP earnings in fiscal year 2010 and accretive to non-GAAP earnings in fiscal year 2011. With the closing of the voluntary offer, Cisco BV holds approximately 91.1 per cent of the voting rights and share capital in Tandberg.
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