Cisco Snags Tandberg for $3 Billion
Dell (DELL) buys Perot Systems (PER) for $3.9 billion. Then Xerox (XRX) purchases Affiliated Computer Services (ACS) for $6.4 billion. Now Cisco is acquiring Tandberg.
Cisco (CSCO) will pay nearly $3 billion in cash for the Norwegian videoconference company, which it hopes will bolster its position in videoconferencing. The offer values Tandberg at 11 percent more than its closing price in Oslo trading yesterday and at about 23 times 2010 earnings.
“This fits very well with Cisco,” Robeco NV’s Michiel Plakman told Bloomberg. “They will immediately become the most important player in the market and aren’t paying a ridiculous premium, so this is positive.”
Cisco’s tender offer has the recommendation of the Tandberg board and is expected to close in the first half of next year.