Company expects to close purchase within weeks
Cisco expects the Tandberg deal to close within weeks, now that the U.S. Department of Justice and the European Union have blessed the $3.4 billion acquisition. IDG News Service correspondent Grant Gross reports that the DoJ determined the buyout is not likely to be anticompetitive because of the evolving nature of the videoconferencing market and Cisco’s pledge to provide interoperable systems.
Cisco announced its intent to buy Tandberg last October for $3 billion. After a series of shareholder protests, Cisco raised its offer to $3.4 billion and eventually won them over last December.
Tandberg will provide Cisco with a range of low-end and mid-range videoconferencing systems to augment its high-end TelePresence system and fill out its virtual and videoconferencing portfolio. Tandberg also allows Cisco to become the market leader in videoconferencing.
Cisco views video as the “killer app” driving demand for Internet and IP services, and infrastructure upgrades fueling further sales of its routers and switches.
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