Reminding everyone just who it is that has the cash to make deals right now, telecommunications equipment giant Cisco Systems (NASDAQ:CSCO, news, filings) announced today that it will be purchasing Norway’s Tandberg for some $3B. That’s an 11% premium above the company’s current stock price. Tandberg makes videoconferencing equipment, and its technology is a great fit for Cisco given the focus they have been putting on video in the corporate marketplace, e.g. telepresence and CDN.
It’s not a done deal yet though, the bid has to hold up for four weeks and it is possible that a competing bid could be made. The premium isn’t particularly high, so it isn’t an unreasonable thought. But is it likely? Bidding against Cisco’s $35B stash for a technology it clearly wants would be an uphill battle to say the least.
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