Cisco, Tandberg Acquisition Deal Is Do or Die

By Jessica Davis  |  Print this article Print

Cisco Systems' planned acquisition of video conferencing giant Tandberg will either get the green light or get shut down Dec. 3. Cisco had placed a condition on the $3.4 billion deal, requiring control of 90 percent of shares before it will complete the acquisition. As of Dec. 1, that condition had not yet been met.

Cisco Systems (NASDAQ:CSCO) will announce Dec. 3 whether enough Tandberg (OSL:TAA) shareholders have accepted its offer, effectively enabling Cisco to acquire the video conferencing giant.

Cisco says as of Dec. 1 it controlled about 84 percent of outstanding shares of Tandberg, but the company had set a 90 percent condition for its offer to acquire the company to be met.

If Cisco does not attain the 90 percent, the company says it will announce whether it will withdraw the offer or waive the 90 percent condition. Cisco says it will not extend the offer past Dec. 3.

Cisco initially announced on Sept. 30 plans to fortify its telepresence empire by acquiring Tandberg.

After Tandberg shareholders rebuffed Cisco's original offer of about $3 billion as too low, Cisco increased the offer in mid-November to total about $3.4 billion.

Since Cisco announced its plans to acquire Tandberg, Logitech has announced that it will acquire upstart telepresence vendor LifeSize.
Jessica Davis covers the channel for eWeek and Channel Insider. Her technology journalism career began well before anyone heard of the World Wide Web and has included stints at Infoworld, Electronic News/EDN, and the Philadelphia Business Journal. Her work has also appeared on CNN and Forbes.com. She has covered hardware, software and networking, as well as the business side of technology. She has won several journalism awards, including a national ASBPE award for best staff-written column, and was named Marketing Computers hardest working tech journalist on their inaugural list of top tech journalists. Jessica can be reached at jessica.davis@ziffdavisenterprise.com

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