Furthering its vision to help the business world collaborate more productively, Cisco Systems today announced an agreement to commence a tender offer for all the outstanding shares of Norway-based video technology specialist Tandberg.
Under the deal approved by Tandberg’s board, Cisco will offer 153.5 Norwegian Kroner for each share, or an 11% premium on Tandberg’s closing price on Wednesday. In aggregate, the purchase price will be approximately $3 billion.
Cisco estimates that the deal will close in the first half of 2010 and will be accretive to earnings by fiscal 2011. Tandberg brought in $808 million in operating revenue in fiscal 2008.
Tandberg’s product portfolio ranges from telepresence video displays, which allow remote personnel to meet via videoconference, to servers and hardware platforms that facilitate and manage network and video traffic, including multi-vendor communications.