Cisco agrees to buy Norway’s Tandberg for $3 bln
Cisco® (NASDAQ: CSCO) today (Oct. 1) announced a definitive agreement for Cisco to launch a recommended voluntary cash offer to acquire Tandberg (OSLO: TAA.OL).
Cisco is the world’s largest maker of computer networking equipment. Tandberg is a global leader in video communications, including a broad range of world-class video endpoint and network infrastructure solutions with intercompany and multi-vendor interoperability.
In the video above Tandberg’s CEO, Fredrik Halvorsen, and CEO of Cisco Systems, John Chambers, discuss the proposed acquisition.
With the proposed acquisition, Cisco will expand its collaboration portfolio to offer more solutions to a greater number of customers, further accelerating market adoption globally.
Tandberg employs 1,500 people globally, with joint headquarters in Oslo and New York.
Under the terms of the agreement, Cisco will commence a cash tender offer to purchase all the outstanding shares of Tandberg for 153.5 Norwegian Kroner per share 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 acquisition is expected to close during the first half of calendar year 2010; however, the close date is subject to customary closing conditions, including regulatory review in the United States and elsewhere. Cisco expects the acquisition to be accretive to Cisco’s non-GAAP earnings in fiscal year 2011.