Cisco acquires Tandberg for $3 billion

Video will become "ubiquitous" according to Cisco, following its $3 billion acquisition of Tandberg.

Cisco logo

Enterprises are "entering the next phase of communication", Marthin De Beer, senior vice president of Cisco's emerging technologies group, claimed following the company's $3 billion purchase of video conferencing company Tandberg.

The deal, which was announced yesterday, values the company's remaining shares at 25 per cent more than their three-month weighted average, claimed Cisco.

Advertisement - Article continues below

Tandberg is a Norwegian company that specialises in smaller teleconferencing hardware and networking, including hardware and software for desktop computers.

Cisco's current teleconferencing strength lies in larger, enterprise-level setups such as its Cisco Telepresence rooms, which allow by-the-hour rental of video conferencing facilities.

De Beer said today that the acquisition of Tandberg would extend "Cisco's telepresence portfolio all the way from the desktop to the boardroom."

"We strongly believe that this interoperability will accelerate the market, to the benefit of all users, and help make video ubiquitous in the enterprise," he added.

De Beer echoed a claim made by Ned Hooper, Cisco's chief strategy officer, that the global "collaboration" market is worth $34 billion. Currently, video conferencing accounts for only $4 billion.

"We think that the combined efforts of Cisco and Tandberg will accelerate market adoption of video," said De Beer.

He added that he thought the acquisition would "expand the market for video in the enterprise, driving opportunity and establishing a new industry around video solutions and applications."

Advertisement - Article continues below
Advertisement - Article continues below

Tandberg's chief executive, Fredrik Halvorsen, added: "This transaction is a vote of confidence, not just in Tandberg but in our technology and our people."

Upon the completion of the deal, expected in the first half of 2010, Halvorsen will lead Cisco's TelePresence Technology Group, reporting to Marthin DeBeer.

Tandberg employs 1,500 people globally, and has offices in the UK. The company hasn't commented on what will happen to its employees but said in a statement that it considered its employees "extremely important".

Featured Resources

The case for a marketing content hub

Transform your digital marketing to deliver customer expectations

Download now

Fast, flexible and compliant e-signatures for global businesses

Be at the forefront of digital transformation with electronic signatures

Download now

Why CEOS should care about the move to SAP S/4HANA

And how they can accelerate business value

Download now

IT faces new security challenges in the wake of COVID-19

Beat the crisis by learning how to secure your network

Download now



Cisco and Sony postpone events due to ongoing protests

2 Jun 2020
chief executive officer (CEO)

Western Digital hires Cisco’s David Goeckeler as its new CEO

6 Mar 2020

Cisco WebEx will use voice tools to exploit ‘next frontier’ of data insights

29 Jan 2020
Network & Internet

What to expect from Cisco Live 2020

24 Jan 2020

Most Popular


Apple confirms serious bugs in iOS 13.5

4 Jun 2020

The UK looks to Japan and South Korea for 5G equipment

4 Jun 2020

Tycoon ransomware discovered using Java image files to target software firms

5 Jun 2020