14 DAY TRIAL // Cisco has announced it plans to go ahead with the acquisition of Norwegian video conferencing services and equipment provider Tandberg. The company had previously made an offer to buy all outstanding shares with the Norwegian company valued at $3.4 billion. It now says it has managed to acquire 89 percent of the shares below the 90 percent minimum it set in the proposal. The company has decided to waiver its previous condition, presumably because of the small difference, and will now move forward with the acquisition.
All the details of the deal haven't been finalized yet, but the company says it intends to complete the deal provided all the provisions of the initial offer are met or waived. “There may be adjustments to the preliminary result due to possible corrections and changes following registration with the Verdipapirsentralen (VPS). The final result will be published as soon as it is available,” the company said in a statement. “Cisco intends to complete the voluntary public cash offer subject to the satisfaction or waiver of the remaining conditions to the offer as set forth in the offer document.”
It hasn't been all smooth sailing for Cisco. In its initial offer, the company was willing to pay up to $3 billion for the company. Tandberg shareholders were unimpressed and 90 percent of them rejected the offer. Cisco then raised its bid to $3.4 billion which seems to be more to the liking of the shareholders as 89 percent of them approve it. Cisco says it may increase its stake by acquiring more shares through alternative methods.
If Cisco completes the deal it would become the world's biggest video conferencing equipment provider for businesses. It already offers a high-end product dubbed TelePresence intended for large scale enterprises. Tandberg, on the other hand, has a more varied selection of products all the way down to the consumer level. It is believed that Cisco will tie in these offerings with TelePresence to cover a wider area of the market.