Cisco Acquires Tandberg
Cisco Made an acquisition offer to Tandberg today. TANDBERG, based in Oslo, Norway, and New York, is a global leader in video communications, including a broad range of video endpoint and network infrastructure solutions with intra company and multi-vendor interoperability.
The acquisition will aid Cisco reaching even further into the collaboration and teleprecense market, specially small business sector. It will also open more doors for Cisco globally for it's communications products.
Under the terms of the agreement, Cisco will commence a cash tender offer to purchase for an aggregate purchase price of approximately $3.0 billion. This represents an 11.0% premium to the previous day closing price of TANDBERG's stock, and a 25.2% premium to the 3-month volume weighted average closing price for TANDBERG's stock. The proposal was recommended unanimously by TANDBERG's board of directors.
The parties expect the acquisition to close during the first half of calendar year 2010 and Cisco expects the acquisition to be accretive to Cisco's non-GAAP earnings in fiscal year 2011.
On the occation, Cisco's Chairman and Chief Executive Officer, John Chambers said,
"Cisco and TANDBERG have remarkably similar cultures and a shared vision to change the way the world works through collaboration and video communications technologies," said Cisco Chairman and Chief Executive Officer John Chambers. "Collaboration is a $34 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."
while CEO, TANDBERG Fredrik Halvorsen,said
"Cisco and TANDBERG share a vision of changing the way people communicate and collaborate," said TANDBERG Chief Executive Officer Fredrik Halvorsen. "This transaction is a vote of confidence, not just in TANDBERG but in our technology and our people. The combination of world-class technologies, Cisco's global scale, and exceptional people from both organizations will enable us to accelerate innovation and market adoption."