Cisco buys Tandberg for US$3.4 billion

After extending its offer three times and raising the price, Cisco Systems has finally completed its acquisition of global video communications provider Tandberg for NOK 19 billion (US$3.4 billion). Cisco originally offered US$3 billion in October but was rejected by 90 per cent of Tandberg share owners as undervaluing the company.

Commencing April 26, Tandberg’s full product line is incorporated into Cisco’s TelePresence range, while its CEO Fredrick Halvorsen will lead a new unit of Cisco called the TelePresence Technology Group (TTG) in the role of senior vice president. The newly-formed group includes three fully integrated businesses that will focus on endpoints, infrastructure and Cisco TelePresence cloud services.