Friday, October 2, 2009

If I had 3 Billions Dollars?

In Cash - Really, would you do this?

Cisco makes recommended cash offer to acquire TANDBERG for $3 billion

Cisco Systems Inc. announced Thursday a definitive agreement for Cisco to launch a recommended voluntary cash offer to acquire TANDBERG.

TANDBERG, based in Oslo, Norway, and New York, is a provider of video communications, including a range of video endpoint and network infrastructure solutions with intercompany and multi-vendor interoperability. With this proposed acquisition, Cisco will expand its collaboration portfolio to offer more solutions to a larger number of customers, further accelerating market adoption globally.

Under the terms of the agreement, Cisco will commence a cash tender offer to purchase all the outstanding shares of TANDBERG for 153.5 Norwegian Kroner per share for an aggregate purchase price of approximately $3.0 billion. This represents an 11.0 percent premium to the previous day closing price of TANDBERG's stock, and a 25.2 percent premium to the three-month volume weighted average closing price for TANDBERG's stock. The proposal was recommended unanimously by TANDBERG's board of directors.

The acquisition is expected to close during the first half of calendar year 2010, though the close date is subject to customary closing conditions, including regulatory review in the United States and elsewhere. Cisco expects the acquisition to be accretive to Cisco's non-GAAP earnings in fiscal year 2011.

TANDBERG's 1,500 employees globally, with innovation centers in Norway and the United Kingdom, will be important as Cisco's team continues to drive video innovation and growth. Upon completion of the transaction, TANDBERG's CEO Fredrik Halvorsen will lead the new TelePresence Technology Group, reporting to Marthin De Beer, senior vice president of Cisco's Emerging Technologies Group.
"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 Chairman and Chief Executive Officer, John Chambers. "Collaboration is a $34 billion market and is growing rapidly -- enabled by networked Web 2.0 technologies. This acquisition showcases Cisco's financial strength and ability to quickly capture key market transitions for growth."

“Cisco and TANDBERG share a vision of changing the way people communicate and collaborate," said TANDBERG Chief Executive Officer, Fredrik Halvorsen. "This transaction is a vote of confidence, not just in TANDBERG but in our technology and our people. 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."

Cisco's collaboration vision is to enable a sustainable, new level of enterprise productivity, agility and innovation by transforming the way people interact, share knowledge and deliver productive outcomes within and across organizations. TelePresence and high-quality video have redefined how users communicate through high-quality video experiences, and are becoming a larger segment of the broader collaboration market.

So how would you spend 3 BILLIONS DOLLARS IN CASH?

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