Cisco clears final regulatory hurdles in US, Europe in deal for TandbergBy AP
Monday, March 29, 2010
Cisco cleared by regulators to buy Tandberg
SAN JOSE, Calif. — Cisco Systems Inc. said Monday it had agreed to make concessions to secure clearance by European and U.S. regulators for its proposed $3.4 billion purchase of Norwegian videoconferencing equipment maker Tandberg ASA.
The companies expect the deal to be completed in the next few weeks.
The European Commission approved the deal provided that Cisco make some concessions, and the U.S. Justice Department said it won’t challenge the acquisition in view of Cisco’s commitments to the EC.
Cisco said it had agreed to enhance interoperability between its multi-screen video conferencing products and competitive products. It also agreed to appoint an independent monitor, who must be approved by the EC, to oversee the implementation of these commitments.
Networking equipment maker Cisco agreed last year to pay $3.4 billion for Tandberg, the world’s biggest maker of videoconferencing equipment.
The deal is still being reviewed by regulators in Brazil, but Cisco said the approvals from Europe and the U.S. were the last required before it can complete the deal.
Cisco shares rose 5 cents to $26.51 in afternoon trading.
Tags: California, Europe, North America, Ownership Changes, San Jose, United States