Updated with Tandberg stock price
SAN JOSE, Calif. (
) -- Shares of
Thursday were trading in line with the price that
agreed to pay for the Oslo, Norway, video communications company.
Cisco, the networking-equipment gear maker, plans to begin a tender offer to buy Tandberg for 153.5 Norwegian kroner a share ($26.49), or just under $3 billion. The price is an 11% premium to Tandberg's closing stock price Wednesday, and a premium of more than 25% to Tandberg's average closing price over the last three months.
Shares of Tandberg rose in early trading by 11% to 153.50 kroner.
Cisco said Thursday the acquisition is expected to close during the first half of 2010, and will add to its non-GAAP earnings in fiscal 2011.
Cisco said the acquisition will expand its so-called collaboration portfolio to "offer more solutions to a greater number of customers, further accelerating market adoption globally."
The proposal was recommended unanimously by Tandberg's board.
"Cisco and Tandberg have remarkably similar cultures and a shared vision to change the way the world works through collaboration and video communications technologies," said Cisco Chairman and CEO John Chambers, in a statement. "Collaboration is a $34 billion market and is growing rapidly -- enabled by networked Web 2.0 technologies. This acquisition showcases Cisco's financial strength and ability to quickly capture key market transitions for growth."
-- Reported by Joseph Woelfel in New York
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