Cisco to acquire Tandberg

Cisco announced a definitive agreement to launch a recommended voluntary cash offer to acquire Tandberg. Tandberg, based in Oslo, Norway, and New York, is a global leader in video communications, including a broad range of world-class video endpoint and network infrastructure solutions with inter company and multi-vendor interoperability. With this proposed acquisition, Cisco will expand its collaboration portfolio to offer more solutions to a greater number of customers, further accelerating market adoption globally. Under the terms of the agreement, Cisco will commence a cash tender offer to purchase all the outstanding shares of Tandberg for 153.5 Norwegian Kroner per share for an aggregate purchase price of about US$3bn. This represents an 11% premium to the previous day closing price of Tandberg's stock, and a 25.2% premium to the three-month volume weighted average closing price for Tandberg's stock. The proposal was recommended unanimously by Tandberg's board of directors. The acquisition is expected to close during the first half of calendar year 2010. However, the close date is subject to customary closing conditions, including regulatory review in the US and elsewhere. Cisco expects the acquisition to be accretive to Cisco's non-GAAP earnings in fiscal year 2011.