Cisco sweeps up Tandberg for €2.04b

Cisco is expanding its stake in the telepresence market acquiring videoconferencing systems maker Tandberg for €2.04 billion.

Under the acquisition Cisco said it would retain Tandberg's Norway operations as a European centre of video excellence, complementing its own video team in Belgium.
Tandberg's global workforce of 1,500 employees will also be kept on including Tandberg's CEO Fredrik Halvorsen will head the new Telepresence Technology Group. He will report to Marthin De Beer, senior VP of Cisco's Emerging Technologies Group.
For Cisco the acquisition represents its largest since its US$3.2bn cash purchase of Webex in 2007.
The Cisco offer has been recommended by the Tandberg board.
Cisco’s tender offer, of NKr153.5 for each Tandberg share, represents an 11% premium to the closing price on Wednesday. Subject to regulatory approval, the takeover is expected to close in the first half of 2010, and Cisco expects the acquisition to add to its non-GAAP earnings in fiscal 2011.
In 2007, Ericsson acquired Tandberg Television for €955 million as part of its bid to accelerate its move into IPTV.