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Cisco buys out Tandberg for $3 billion

Today, Cisco announced that it has agreed to buy Norway-based video communications leader Tandberg for $3 billion. Under the terms of the agreement, Cisco will purchase all the outstanding shares of Tandberg for 153.5 Norwegian Kroner per share, for an aggregate purchase price of approximately $3 billion. This represents an 11 percent premium to the previous day closing price of Tandberg’s stock. The acquisition is expected to close during the first half of 2010.

Tandberg’s leading video endpoints and network infrastructure solution will be integrated into Cisco’s collaboration architecture.This will enable intercompany and multi-vendor interoperability and ease of use across the full product portfolio, ranging from desktop to immersive, multi-screen TelePresence. This interoperability will benefit Cisco’s customers, but also competitors and partners by accelerating customer interest in video collaboration globally.

Upon completion of the transaction, Tandberg’s CEO Fredrik Halvorsen will lead the new TelePresence Technology Group, reporting to Marthin De Beer, senior vice president of Cisco’s Emerging Technologies Group.

“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 CEO 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.”

“Cisco and Tandberg share a vision of changing the way people communicate and collaborate, ” Halvorsen said. “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.”

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