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Cisco agrees to buy Norway’s videoconferencing vendor Tandberg for $3 bln

By Hendrik L Clarke for CEOWORLD Magazine Updated:October 1, 2009

Cisco Systems Inc. (CSCO) says it has agreed to buy Tandberg ASA (TAA.OL), a Norwegian company that makes hardware for video conferences, for $3 billion.

Tandberg ASA (TAA.OS ) board of directors has unanimously decided to recommend to its shareholders to accept the offer.

Cisco, the world’s largest maker of computer networking equipment, said Thursday it offered 153.50 kroner ($26.50) per share of Tandberg’s stock, an 11 percent premium on Wednesday’s closing share price.

Cisco, best known for making routers, switches and other gear that transmit data between computers, has recently expanded into 30 new businesses that it says can each produce $1 billion in revenue. The company consistently hails ‘telepresence’ as one of the most promising areas; video-conferencing systems that use large high-definition televisions to create a life-like effect.

Tandberg said in a statement that the proposal was recommended by a unanimous vote of its board of directors. The acquisition is expected to close in the first half of 2010.

Tandberg’s video endpoints and network infrastructure products will be integrated into Cisco’s collaboration products, according to Cisco. When the deal is done Tandberg’s CEO Fredrik Halvorsen will lead a new TelePresence Technology Group at Cisco, the company said.

I guess, acquisition can also turn out to be good news for Cisco’s adjacent businesses, but Cisco paid a lot…

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