Norwegian video conference equipment maker Tandberg has been purchased by US-based network equipment giant Cisco Systems for KR17.2 billion (Ôé¼2 billion).
Oslo, Norway-based Tandberg has similar technology to Cisco with its room-sized video conferencing systems, but it also has smaller, cheaper conferencing units that can sit on desks or be used with personal computers.
In addition, the Norwegian company has specialised software for managing conferencing systems and for creating networks between systems that use different technology, which Cisco said it intends to integrate into its own collaboration architecture.
Tandberg customers are typically large companies in North America and Europe; however, following the takeover, San Jose, California-based Cisco now plans to target much smaller companies and ultimately, consumers.
The all cash deal, which represents an 11 per cent premium on the firmÔÇÖs closing price on Wednesday, has been recommended unanimously by the Tandberg board to its shareholders. It is expected to close in the first half of 2010, subject to regulatory review.
Cisco has said that TandbergÔÇÖs 1,500 employees will be ÔÇ£extremely importantÔÇØ as the US firm continues to drive innovation and growth. TandbergÔÇÖs chief executive Fredrik Halvorsen will remain in his post after the takeover.
In a statement, Halvorsen said: ÔÇ£Cisco and Tandberg share a vision of changing the way people communicate and collaborate. This transaction is a vote of confidence, not just in Tandberg but in our technology and our people.┬á
ÔÇ£The combination of world-class technologies, CiscoÔÇÖs global scale, and exceptional people from both organisations will enable us to accelerate innovation and market adoption.ÔÇØ
John Chambers, chairman and CEO of Cisco, added: ÔÇ£Collaboration is a $34 billion market and is growing rapidlyÔÇöenabled by networked Web 2.0 technologies.
ÔÇ£This acquisition showcases CiscoÔÇÖs financial strength and ability to quickly capture key market transitions for growth.ÔÇØ
Cisco has purchased around 130 companies in over the 25 years it has been in business, using them to enter new markets. In March this year it bought San Francisco-based Pure Digital Technologies, which makes the FlipVideo camcorder, for $590 million.
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