US network equipment major Cisco will be acquiring Norway-based video communications entity Tandberg in an all cash deal worth $3 billion.
Both companies have entered into an agreement for the transaction and subject to regulatory approvals, the deal is expected to be completed in the first half of 2010.
"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 billion," Cisco said in a statement on Thursday.
The deal would help Cisco in expanding its product portfolio in the video conferencing segment.
Tandberg is a global leader in video communications, including a broad range of world-class video endpoint and network infrastructure solutions.
Cisco chairman and chief executive officer John Chambers said that both companies have remarkably similar cultures and a shared vision to change the way the world works through collaboration and video communications technologies.
"This acquisition showcases Cisco's financial strength and ability to quickly capture key market transitions for growth," Chambers added.
Tandberg's chief executive officer Fredrik Halvorsen said the combination of world-class technologies, Cisco's global scale, and exceptional people from both organisations would enable us to accelerate innovation and market adoption.
