Cisco Systems, the world's largest maker of networking and communication equipment, today said that it is acquiring Norway's video-conferencing systems maker, Tandberg ASA for $3 billion in cash, to expand its video-conferencing products portfolio.
Under the deal, San Francisco-based Cisco has made a cash tender offer to purchase all the outstanding shares of Tandberg ASA for 153.5 Norwegian Kroner per share for an aggregate purchase price of approximately $3.0 billion.
This represents an 11.0 per cent premium to Tandberg's closing stock price of 138.30 crowns yesterday, and a 25.2 per cent premium to the 3-month volume weighted average closing price.
"Tandberg's board of directors has unanimously decided to recommend to its shareholders to accept the offer," Cisco said.
The acquisition, which is subject to review by regulators in the US and elsewhere, is expected to close in the first half of next year, and Cisco expects the acquisition to be accretive to its non-GAAP earnings in fiscal year 2011.
Ranked 14th in the BusinessWeek / Interbrand annual ranking of the Best Global Brands for 2009, Cisco with 2009 fiscal year revenue of $36 billion, has made 5 acquisitions in 2008, 11 in 2007 and 130 since it was founded in 1984 by Stanford University computer operators Len Bosack and Sandy Lerner.