Cisco Completes $3.3 Billion Tandberg Buy - InformationWeek
IoT
IoT
Mobile
News
4/20/2010
09:09 AM
50%
50%
RELATED EVENTS
Ransomware: Latest Developments & How to Defend Against Them
Nov 01, 2017
Ransomware is one of the fastest growing types of malware, and new breeds that escalate quickly ar ...Read More>>

Cisco Completes $3.3 Billion Tandberg Buy

Tandberg's videoconferencing product line will be folded into the networking company's TelePresence portfolio.

Cisco says it has finalized the acquisition of videoconferencing firm Tandberg, a major piece of Cisco's strategy of moving beyond routers and switches to supplying the infrastructure for Internet-delivered video communications.

On Monday Cisco said Tandberg's product line would be folded into the networking company's TelePresence portfolio. Specifically, Tandberg technology would be integrated with Cisco's collaboration architecture in order to offer multi-vendor interoperability from desktop through multi-screen telepresence solutions.

Fredrik Halvorsen, former chief executive of Tandberg, will become a senior VP within Cisco and head the company's new Telepresence Technology Group. The organization will focus on endpoints, infrastructure, and cloud services, Cisco said. Halvorsen will report to Marthin De Beer, senior VP of Cisco's emerging technologies group.

In acquiring Tandberg, Cisco encountered some hurdles. Despite having the support of Tandberg directors and management, some stockholders and investment bankers tried to squeeze more money out of Cisco.

After announcing plans for the purchase in October, the deal appeared stalled when Cisco two months later failed at first to get shareholders to tender the required 90% of Tandberg shares. Cisco several days later managed to gain control of more than 91% of the company's shares to close the deal.

On Monday, Cisco said the final purchase price was $3.3 billion.

The acquisition is a major building block in Cisco CEO John Chambers' vision of expanding well beyond its traditional strengths in routers and switches to data centers, servers and particularly to video. "Video," Chambers has said in what is becoming a self-fulfilling prophecy, "is the next wave of Internet disruption."

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll