Cisco Systems has announced a $3bn cash offer for Norwegian
Cisco Systems
videoconferencing company, Tandberg, according to a report in the Financial Times. The acquisition is the largest since the US equipment maker’s $3.2bn purchase of collaboration company Webex in 2007.
Though Cisco has been heavily promoting its high-end “telepresence” systems, which bring a
life-like quality to online meetings, it has lacked a wider range of videoconferencing products, including ones for desktop computers.
The acquisition of Tandberg is expected to help fill this void, whilst also bringing it together with Cisco’s network-based switching technology, which allows for videoconferencing systems made by different companies to work beside one another.
According to the report, the offer will only take a small bite out of Cisco’s $34bn pile of cash and investments, which CEO John Chambers has already said will be used partly to mount strategic acquisitions.
Through the overseas deal, Cisco will be able to use cash it is unable to repatriate in the US without facing tax penalties.
The offer has already been recommended by Tandberg’s board.
Is recession really a good news for all the big fishes in the Technology Industry like CISCO or HP which acquired EDS for $13.9 billion??
