October 1, 2009
Cisco to buy Tandberg for $3 billion
U.S. technology giant Cisco said Thursday it had reached a definitive agreement to purchase Norwegian teleconferencing firm Tandberg for $3 billion.
The cash deal is an 11 percent premium over Tandberg's closing stock value on Sept. 30 and a 25.2 percent premium on the 3-month volume weighted average closing prices for Tandberg stock, the company said in a statement.
Cisco has made numerous acquisitions in the past several years, including a $6.9 billion purchase of Scientific-Atlanta and a $2.9 billion purchase of WebEx, The New York Times reported.
Earlier this year it bought Pure Digital, makers of the Flip video recorders, for $590 million, the Times said.
In 2008, Tandberg's revenues reached $809 million. It employees 1,500 people, mostly in Norway and Britain.
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 in a statement.