Cisco Makes Recommended Offer to Acquire TANDBERG
October 7, 2009 by admin
Filed under Audiovisual, Network, Video Conferencing
SAN JOSE, Calif., NEW YORK, and, OSLO, Norway, October 1, 2009 – Cisco® (NASDAQ: CSCO) today announced a definitive agreement for Cisco to launch a recommended voluntary cash offer to acquire TANDBERG (OSLO: TAA.OL). TANDBERG, based in Oslo, Norway, and New York, is a global leader in video communications, including a broad range of world-class 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 greater 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% premium to the previous day closing price of TANDBERG’s stock, and a 25.2% premium to the 3-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; however, 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.
Highlights / Key Facts:
- 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 easy-to-use, immersive, high-quality video experiences and are becoming a larger segment of the broader collaboration market.
- TANDBERG’s leading video endpoints and network infrastructure solution will be integrated into Cisco’s world-class collaboration architecture.
- This will enable intercompany and multi-vendor interoperability and ease of use across the full product portfolio – from desktop to immersive, multi-screen TelePresence. This interoperability will benefit Cisco’s customers, but also competitors and partners by accelerating customer interest in video collaboration globally.
- Cisco continues to invest in the European market as a center of innovation across all market segments, and will continue to drive global growth by positioning TANDBERG’s Norway operations as a European center of video excellence alongside our Service Provider video team in Kortrijk, Belgium.
- TANDBERG’s 1,500 employees globally, with innovation centers in Norway and the United Kingdom, will be extremely 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.
Quotes:
- John Chambers, Chairman and Chief Executive Officer, Cisco
- Fredrik Halvorsen, Chief Executive Officer, TANDBERG
“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.”
Media Opportunities:
- Cisco CEO John Chambers and TANDBERG CEO Fredrik Halvorsen will host a joint investor call on Oct. 1 at 12 p.m. CET (3 a.m. PT) to discuss the proposed transaction. The dial-in number is +1 212.287.1646 (international) and (888) 788 8648 (United States). Replay of the event is available until October 16 at +1 203.369.0122 (international) and (866) 357 4205 (United States).
- Cisco CEO John Chambers and TANDBERG CEO Fredrik Halvorsen will host a joint press conference on Oct. 1 at 12:45 p.m. CET (3:45 a.m. PT) at the Hotel Continental; Stortingsgaten 24/26, Oslo, Norway. Members of the media are invited to attend in person, dial in to the event or listen to an audiocast. The dial-in number are +44 (0)20 7806 1950 (international) and (888) 935 4575 (United States). Replay of the event is available until October 7 at +47 2100 0498 (international) and (866) 932 5017 (United States). The audiocast will be available at http://nongrata.seria.net/embed.php?id=23717.
- Cisco CEO John Chambers and TANDBERG CEO Fredrik Halvorsen will host a joint multi-point TelePresence roundtable session for investors, analysts and the media on Oct. 1 at 4 p.m. CET (7 a.m. PT) in Oslo, San Jose, Boston and Bedfont Lakes. To watch a live webcast of this session, please click here. Please note that online registration is required. A broadcast replay will be available within 24 hours. For more information on this announcement, please visit newsroom.cisco.com.
Useful Links:
- Video featuring John Chambers, Cisco Chairman and CEO, and Fredrik Halvorsen, TANDBERG CEO, discussing the proposed transaction. http://newsroom.cisco.com/dlls/videos/ciscotandberg_093009.html
RSS Feed for Cisco: http://newsroom.cisco.com/dlls/rss.html
Tags / Keywords:
Cisco, TANDBERG, collaboration, TelePresence, video
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.
About TANDBERG
TANDBERG is the leading provider of telepresence, high-definition videoconferencing and mobile video products and services. The Company has dual headquarters in New York and Oslo. TANDBERG designs, develops and markets systems and software for video, voice and data communication. The Company provides sales, support and value-added services in more than 90 countries worldwide. TANDBERG is publicly traded on the Oslo Stock Exchange under the ticker TAA.OL. Please visit www.tandberg.com for more information.
# # #
Cisco, the Cisco logo and Cisco Systems are registered trademarks or trademarks of Cisco Systems, Inc. and/or its affiliates in the United States and certain other countries. All other trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.
TANDBERG is a registered trademark or trademark in the U.S. and certain other countries. All other trademarks are property of their respective owners.
Forward-Looking Statements
This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including the expected completion of the acquisition and the time frame in which this will occur, the expected benefits to Cisco from completing the acquisition, the impact of the combined company on relevant markets and plans regarding TANDBERG personnel. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including, among other things, obtaining a sufficient number of tendered shares of common stock and regulatory approval of the acquisition, the potential impact on the business of TANDBERG due to the uncertainty about the acquisition, the retention of employees of TANDBERG and the ability of Cisco to successfully integrate TANDBERG and to achieve expected benefits, business and economic conditions and growth trends in the networking industry, customer markets and various geographic regions, global economic conditions and uncertainties in the geopolitical environment and other risk factors set forth in Cisco’s most recent report on Form 10-K. Any forward-looking statements in this release are based on limited information currently available to Cisco, which is subject to change, and Cisco will not necessarily update the information.
LEIGHTRONIX Enhances PEGvault-SD Digital Video Encoder
LEIGHTRONIX announces the first major update to the recently released PEGvault-SD™. The digital video encoder now offers advanced media file transfer features, network optimization, and storage drive integrity checking.
Automatic Transfer to Multiple Destinations
The PEGvault-SD will now transfer newly recorded media files to multiple server destinations. Compatible
destinations consist of the NEXUS®/UltraNEXUS™ video servers, third party servers with FTP capabilities,
PEG Central™ and Worshipnet.TV™ Web media hosting and streaming video-on-demand service, and the
LEIGHTRONIX LGX-SVOD intranet streaming video-on-demand server.
Transfer Holdoff Schedule
A new Transfer Holdoff feature gives users the option to allow or restrict automatic media file transfers to destination
servers on an hourly basis. The transfer holdoff feature is especially useful for preventing PEGvault-
SD file transfers during the highest levels of network traffic, resulting in faster transfer rates and reduced
network congestion.
Delayed Broadcast
The new pre-send and auto-play features allow programs remotely recorded with a PEGvault-SD to be automatically
sent and displayed at a NEXUS or UltraNEXUS site within minutes after recording starts. After the
NEXUS or UltraNEXUS begins to receive a pre-sent file, the PEGvault-SD auto-play setting triggers playback
of the file as quickly as two minutes after the transfer begins to up to one hour later. This simultaneous
record/read/transfer of digital media files as they are created in real time is enabled by the PEGvault-SD’s
advanced file system. The pre-send and auto-play features provide a convenient delayed broadcasting solution
for locations where traditional video or cable transmission of a live signal is not available.
One-Click Drive Checking Feature
The “Disk Diagnostics” Web feature makes it easy to diagnose and prevent errors on the PEGvault-SD’s internal
hard drive. With one mouse click, the disk diagnostics utility will attempt to correct any current or potential
problems and generate a log file detailing the status of the PEGvault-SD’s internal drive.
About the PEGvault-SD
The PEGvault-SD is a specialized digital video/audio encoder that offers remote-controlled, push button
operation and automatic transfers of recorded media files to a user-selected broadcast video server or Web
media hosting destination. Economical and powerful, the PEGvault-SD is the ideal media encoder for quickly
producing top-quality digital media files. The PEGvault-SD is quickly configured for push button recording
through its included Web interface and features simplified RECORD-STOP operation via the supplied wireless
remote control. The hardware-based, integrated video/audio encoder produces broadcast quality digital
media files for use in a wide range of broadcast and cable applications. For those seeking a Web presence,
the PEGvault-SD can be easily set up to produce media files optimized for streaming video-on-demand applications.
About LEIGHTRONIX, INC.
With over 25 years experience in specialty video equipment design and manufacturing, LEIGHTRONIX is
recognized as an industry leader with expertise in digital video, television automation, streaming video-ondemand,
and remote equipment control. A model of stability and longevity in the quickly evolving professional
video market, LEIGHTRONIX continues to set standards in product value and versatility and exceed
customer expectations in both product performance and support. Exceptional product reliability, a standard
5 year warranty, and cost-free technical support have made LEIGHTRONIX one of the most trusted names in
the industry. For more information, please visit www.leightronix.com.
ICIF Creates Michael Vergauwen Education Fund
By InfoComm International, July 20, 2009
InfoComm Foundation Memorializes Leader’s Commitment to Education and Training
FAIRFAX, VA – InfoComm International’s foundation, the International Communications Industries Foundation (ICIF), has announced the creation of a new education fund to recognize the career achievements of AV industry leader Michael Vergauwen. Vergauwen, the COO of AVI Systems and officer of InfoComm International, died in an accident on June 28.
“Michael’s dedication to the industry and to its members serves as a role model for all InfoComm members,” said Randal A. Lemke, Ph.D., Executive Director, InfoComm International. “This fund recognizes his dedicated service and will help more people participate in the AV communications industry.”
The Michael Vergauwen Education Fund will foster educational opportunities, enhancing the audiovisual industry’s service to the public through scholarships, curriculum development, community engagement and the promotion of careers in the AV field. Proceeds from investing the fund will be used on an annual basis to create these new educational opportunities, while the balance will be maintained to continue to make investments in the industry on an ongoing basis.
The fund has set an initial target of $100,000 to begin the activities of the fund. “Da-Lite Screen Company has graciously directed the ICIF to put their recent $25,000 NEC Best of InfoComm Award prize and their $25,000 matching donation towards the Michael Vergauwen Education Fund,” said Lemke. “InfoComm has also set aside $25,000 to match additional donations. It is our sincere hope that the AV industry will be as generous as it can to help continue the legacy of Michael Vergauwen.”
Companies and individuals wishing to contribute to this fund should send donations to: Michael Vergauwen Education Fund, ICIF, 11242 Waples Mill Road, Suite 200, Fairfax, VA 22030. Checks should be made payable to the International Communications Industries Foundation. Donations will be tax deductible as provided by Section 501(c)(3) of the United States International Revenue Code.
For additional information, please visit www.infocomm.org.
Tandberg offers telepresence interoperability
24.07.09
By David Lawson
High-definition video conferencing is saving companies time and money
Half a dozen people are chatting across a table in a windowless room, deep in a plush London office block. Nothing unusual there – apart from the fact that one is in New York, two are in Singapore and another is in Frankfurt.
Video conferencing has been around for almost a decade, but confined mainly to one-to-one conversations on computers or to cinema-style suites for multi-person meetings.
However, broadband transmission and high-definition screens are now taking communications to another level.
‘Telepresence’ is a convincing illusion that someone on the other side of the world is in the same room. The growing band of users find that high definition makes faces crystal clear and participants life size.
‘Multiple cameras mean you can pick up the nuances of facial expressions and body language vital for personal judgements on which business decisions often hinge,’ says one agent who is experimenting with pitching investments to potential investors in the Middle East.
‘You can also look at the people sitting quietly in the background. They may be the real decision makers and their mood is often significant.’
Up close and profitable?
Pioneers of this technology are still sometimes not confident enough to admit that they use it, fearing it may seem they are not putting in the hard yards to close deals. But cost cutting and pressures to adopt ‘greener’ policies are bringing video out of the basement (see box).
Mark Dixon, chief executive of Regus Group, is so convinced about potential demand that he is investing in a £32m venture with Cable & Wireless to install a network of giant screens in up to 50 of his business centres.
Hire charges are not cheap at up to £400 an hour for a conference of more than four people. But Regus commercial director Simon Hunt says this is peanuts compared with the amount spent jetting around the world for business meetings.
A five-hour session in the newly launched telepresence suite at Regus’s centre on London’s Bruton Street would cost half the total outlay of sending two people to New York, once extras such as accommodation and other expenses are included, he says. And it would save lost time travelling and working away from the office.
BT Worldwide eliminated more than 850,000 face-to-face meetings in a single year through remote conferencing, saving £135m on travel, more than £100m on management time and 97,000 tonnes of carbon emissions, a study by the University of Bradford and research centre SustainIT found.
Video conferencing on smaller screens, which costs around £150 an hour, is already a popular service in around 600 Regus centres across the world. Up to 80% of users are not office tenants but outsiders who drop in when they need the service.
Recruitment firms and lawyers are key users. They make huge savings through remote interviews and by taking witness statements, says Hunt.
This modest form of video conferencing is expanding exponentially as pressure increases on firms to demonstrate Green credentials. Demand soared 40% last year.
Big firms have set up their own suites using the Polycom equipment adopted by Regus or the products of rivals, such as Cisco Systems. Small companies rely on Microsoft software, research group Instat reports.
The software is almost a routine installation on PCs, while the expansion of wireless broadband means coffee bars and even bedrooms can be connected as conversations take place across the world.
For a change, small firms are leading the charge, says Angus MacFadyen, managing director of property software specialist Aperio.
‘Big firms often refuse to allow video on personal PCs because of security fears, so you have to book a slot in a dedicated suite,’ he explains.
‘Individuals are much less constrained.
Every day I log in for joint conferences with smaller clients across Europe.’
NG Bailey Picks up remote
Building services group NG Bailey is rolling out a remote conferencing system after proving its simplicity and effectiveness to staff during ‘virtual coffee mornings’ between offices.
‘Getting employees to use video conferencing can be the biggest challenge as they are often apprehensive of putting new ways of working into practice,’ says a spokeswoman.
Fifteen Tandberg high-definition screens will be linked to the company’s internet protocol network. NG Bailey, which employs around 4,000 people and has a turnover of about £600m, estimates that it will cover costs within the first year.
The system will be monitored to calculate savings in travel expenses by measuring how many users join each conference, where they are from and how long they are online. The Tandberg system, which is compatible with customers using other makes, has already been installed by Bailey Teswaine, NG Bailey’s network infrastructure arm.
‘Video conferencing can give staff a better work-life balance, cut company travel costs and improve communications with customers and partners, while retaining the trust built by face-to-face meetings,’ says the company.
Read more: http://www.propertyweek.com/story.asp?sectioncode=762&storycode=3145645&c=1#ixzz0NH9zFKJn
24.07.09
By David Lawson
High-definition video conferencing is saving companies time and money
Half a dozen people are chatting across a table in a windowless room, deep in a plush London office block. Nothing unusual there – apart from the fact that one is in New York, two are in Singapore and another is in Frankfurt.
Video conferencing has been around for almost a decade, but confined mainly to one-to-one conversations on computers or to cinema-style suites for multi-person meetings.
However, broadband transmission and high-definition screens are now taking communications to another level.
‘Telepresence’ is a convincing illusion that someone on the other side of the world is in the same room. The growing band of users find that high definition makes faces crystal clear and participants life size.
‘Multiple cameras mean you can pick up the nuances of facial expressions and body language vital for personal judgements on which business decisions often hinge,’ says one agent who is experimenting with pitching investments to potential investors in the Middle East.
‘You can also look at the people sitting quietly in the background. They may be the real decision makers and their mood is often significant.’
Up close and profitable?
Pioneers of this technology are still sometimes not confident enough to admit that they use it, fearing it may seem they are not putting in the hard yards to close deals. But cost cutting and pressures to adopt ‘greener’ policies are bringing video out of the basement (see box).
Mark Dixon, chief executive of Regus Group, is so convinced about potential demand that he is investing in a £32m venture with Cable & Wireless to install a network of giant screens in up to 50 of his business centres.
Hire charges are not cheap at up to £400 an hour for a conference of more than four people. But Regus commercial director Simon Hunt says this is peanuts compared with the amount spent jetting around the world for business meetings.
A five-hour session in the newly launched telepresence suite at Regus’s centre on London’s Bruton Street would cost half the total outlay of sending two people to New York, once extras such as accommodation and other expenses are included, he says. And it would save lost time travelling and working away from the office.
BT Worldwide eliminated more than 850,000 face-to-face meetings in a single year through remote conferencing, saving £135m on travel, more than £100m on management time and 97,000 tonnes of carbon emissions, a study by the University of Bradford and research centre SustainIT found.
Video conferencing on smaller screens, which costs around £150 an hour, is already a popular service in around 600 Regus centres across the world. Up to 80% of users are not office tenants but outsiders who drop in when they need the service.
Recruitment firms and lawyers are key users. They make huge savings through remote interviews and by taking witness statements, says Hunt.
This modest form of video conferencing is expanding exponentially as pressure increases on firms to demonstrate Green credentials. Demand soared 40% last year.
Big firms have set up their own suites using the Polycom equipment adopted by Regus or the products of rivals, such as Cisco Systems. Small companies rely on Microsoft software, research group Instat reports.
The software is almost a routine installation on PCs, while the expansion of wireless broadband means coffee bars and even bedrooms can be connected as conversations take place across the world.
For a change, small firms are leading the charge, says Angus MacFadyen, managing director of property software specialist Aperio.
‘Big firms often refuse to allow video on personal PCs because of security fears, so you have to book a slot in a dedicated suite,’ he explains.
‘Individuals are much less constrained.
Every day I log in for joint conferences with smaller clients across Europe.’
NG Bailey Picks up remote
Building services group NG Bailey is rolling out a remote conferencing system after proving its simplicity and effectiveness to staff during ‘virtual coffee mornings’ between offices.
‘Getting employees to use video conferencing can be the biggest challenge as they are often apprehensive of putting new ways of working into practice,’ says a spokeswoman.
Fifteen Tandberg high-definition screens will be linked to the company’s internet protocol network. NG Bailey, which employs around 4,000 people and has a turnover of about £600m, estimates that it will cover costs within the first year.
The system will be monitored to calculate savings in travel expenses by measuring how many users join each conference, where they are from and how long they are online. The Tandberg system, which is compatible with customers using other makes, has already been installed by Bailey Teswaine, NG Bailey’s network infrastructure arm.
‘Video conferencing can give staff a better work-life balance, cut company travel costs and improve communications with customers and partners, while retaining the trust built by face-to-face meetings,’ says the company.
Read more: http://www.propertyweek.com/story.asp?sectioncode=762&storycode=3145645&c=1#ixzz0NH9zFKJn
Telepresence is expected to be a $1,4-billion industry by 2013, as business leaders continue to look for ways to transform their organisations, reduce costs and increase collaboration.
By enabling telepresence interoperability with standards-based video conferencing and third party telepresence systems, Tandberg is seeking to grow the telepresence market through true B2B communication.
In line with this, Tandberg has introduced the new Tandberg TS 7010, a compact telepresence bridge that offers greater flexibility and interoperability for telepresence customers.
A compact version of the award-winning chassis-based Tandberg Telepresence Server, the TS 7010 is a powerful solution that enables high-definition, multi-vendor, multi-screen telepresence calls for entry-level customers and remote offices.
Recently designated as the 2009 Telepresence Provider of the Year by European CEO magazine, the Tandberg solution was called “The benchmark for enterprise-wide Telepresence deployment” with its product design and ability to interoperate with third-party telepresence products. At the heart of this interoperability is the telepresence server portfolio, which now includes the TS 7010.
“Customers need solutions that bring their employees, customers and suppliers together. They will no longer accept the limitations of proprietary systems that lock out other vendors’ systems and prohibit open collaboration. Tandberg has overcome this barrier, which is key for successful B2B communications and maximising the value of telepresence investments,” says Bryan Thompson, Tandberg area manager, Sub-Sahara South Africa.
Tandberg’s recent awards have been: Best in Show, Design Excellence, Telepresence Provider of the Year and several Product of the Year awards
Telepresence is expected to be a $1,4-billion industry by 2013, as business leaders continue to look for ways to transform their organisations, reduce costs and increase collaboration.
By enabling telepresence interoperability with standards-based video conferencing and third party telepresence systems, Tandberg is seeking to grow the telepresence market through true B2B communication.
In line with this, Tandberg has introduced the new Tandberg TS 7010, a compact telepresence bridge that offers greater flexibility and interoperability for telepresence customers.
A compact version of the award-winning chassis-based Tandberg Telepresence Server, the TS 7010 is a powerful solution that enables high-definition, multi-vendor, multi-screen telepresence calls for entry-level customers and remote offices.
Recently designated as the 2009 Telepresence Provider of the Year by European CEO magazine, the Tandberg solution was called “The benchmark for enterprise-wide Telepresence deployment” with its product design and ability to interoperate with third-party telepresence products. At the heart of this interoperability is the telepresence server portfolio, which now includes the TS 7010.
“Customers need solutions that bring their employees, customers and suppliers together. They will no longer accept the limitations of proprietary systems that lock out other vendors’ systems and prohibit open collaboration. Tandberg has overcome this barrier, which is key for successful B2B communications and maximising the value of telepresence investments,” says Bryan Thompson, Tandberg area manager, Sub-Sahara South Africa.
Tandberg’s recent awards have been: Best in Show, Design Excellence, Telepresence Provider of the Year and several Product of the Year awards.
