Network giant Cisco is making a landmark $3 billion acquisition of Norwegian videoconferencing group Tandberg, bolstering the firm’s position in the sector.
Providing shareholder approval is met, Tandberg's video and network products will be integrated into Cisco's collaboration architecture.
"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 CEO John Chambers.
"Collaboration is a $34bn market and is growing rapidly, enabled by networked Web 2.0 technologies."
The unsolicited takeover bid was at an 11 per cent premium to Tandberg’s market value.
Prior to the Cisco takeover bid, buzz around Tandberg used to be centred on the firm’s TelePresence technology; a videoconference feature that can display a 3D image of a remote caller.
Cisco will integrate this business arm and continue developing it, with soon-to-be former Tandberg CEO Fredrik Halvorsen heading up the group.
“The combination of world-class technologies, Cisco's global scale, and exceptional people from both organizations will enable us to accelerate innovation and market adoption,” said Halvorsen.