Cisco (CSCO) Offers to Acquire TANDBERG for $3 Billion
Cisco (NASDAQ: CSCO) announced a definitive agreement for Cisco to launch a recommended voluntary cash offer of approximately $3.0 billion to acquire TANDBERG of Oslo, Norway.
TANDBERG is a global leader in video communications, including a broad range of world-class video endpoint and network infrastructure solutions with intercompany 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 approximately $3.0 billion. This represents an 11.0% premium to the previous day closing price of TANDBERG's stock, and a 25.2% premium to the 3-month volume weighted average closing price for TANDBERG's stock. The proposal was recommended unanimously by TANDBERG's board of directors.
Cisco expects the acquisition to be accretive to Cisco's non-GAAP earnings in fiscal year 2011.
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 United States and elsewhere.
TANDBERG is a global leader in video communications, including a broad range of world-class video endpoint and network infrastructure solutions with intercompany 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 approximately $3.0 billion. This represents an 11.0% premium to the previous day closing price of TANDBERG's stock, and a 25.2% premium to the 3-month volume weighted average closing price for TANDBERG's stock. The proposal was recommended unanimously by TANDBERG's board of directors.
Cisco expects the acquisition to be accretive to Cisco's non-GAAP earnings in fiscal year 2011.
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 United States and elsewhere.
You May Also Be Interested In
- UPDATE: Angelo, Gordon to Acquire Benihana (BNHN) for $16.30/Share in Cash
- Q1 Preview: Dell (DELL) Could Surprise on Continued Corp. PC Refresh, Cloud
- DigitalGlobe (DGI) Pops On Rumors of Higher Bid
Create E-mail Alert Related Categories
Hot List, Mergers and AcquisitionsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
