Cisco has announced its intention to acquire video conferencing and communication vendor, Tandberg.
According to a press statement, Cisco has commenced a cash tender off to purchase all company shares for approximately $US3 billion. The proposal has been unanimously recommended by Tandberg’s board of directors. Norway-based Tandberg is listed on the Oslo Stock Exchange and has 1500 employees worldwide.
The acquisition is expected to close during the first half of next year but is subject to closing conditions as well as regulatory reviews in the US and elsewhere.
"Cisco and Tandberg have remarkably similar cultures and a shared vision to change the way the world works through collaboration and video communications technologies," Cisco chairman and CEO, John Chambers, said in a statement. "Collaboration is a $US34 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."
Cisco said it planned to integrate Tandberg’s video endpoints and network infrastructure solution into its collaboration architecture.
“This will enable intercompany and multi-vendor interoperability and ease of use across the full product portfolio – from desktop to immersive, multi-screen TelePresence. This interoperability will benefit Cisco's customers, but also competitors and partners by accelerating customer interest in video collaboration globally,” Cisco said in a press statement.
The deal represents yet another step in Cisco’s plans to dominate the video communications market. In March, the networking giant acquired digital video vendor, Flip.
Tandberg’s Australian distributors are Express Data and Westan.