Cisco will have completed its acquisition of Norwegian video company Tandberg once the compulsory acquisition for the company's remaining shares is closed. Cisco is acquiring the firm for $3.3 billion -- after its initial offer of $3 billion was rejected by shareholders. The compulsory acquisition will be effective at close of trading Monday. Cisco already owns 91.1 percent of Tandberg's shares.
The deal, which received regulatory approval from both U.S. and European authorities this March, will expand Cisco's footprint in the videoconference industry -- a space that has been consolidating while also increasing in importance as the recession has curtailed business travel. Video conferencing -- especially the high-end, sophisticated technology that Tandberg offers -- has become an important substitute.
Indeed, during the conference call discussing the acquisition, Cisco senior vice president for Emerging Technologies Marthin De Beer noted that video conferencing has been used as a last-minute alternative for companies grounded by the cancelled flights in Europe due to Iceland's recent volcanic eruptions.