Network giant Cisco has increased its original offer for Norwegian video telepresence provider Tandberg by $400m after saying that it would not increase its offer.
At a Telepresence conference last week Chris Dedicoat, President of European Markets at Cisco, said: “The company believes that the price it has offered for Tandberg represents the value of the company.”
However, Tandberg shareholders rebuffed Cisco's original offer of $3bn (£1.8bn), prompting the new offer of £3.4bn (£2bn).
Cisco said that the new offer will only be on the table until 1 December - but that it needs the agreement of 90 per cent of Tandberg shareholders to secure the deal.
The hike in Cisco's bid indicates how important the acquisition is to the company, which currently offers high-end Telepresence technology to market leaders. The deal with Tandberg would give it access to video conferencing technology aimed at the mid-market.
In addition, businesses wanting to save money on travel will invest significantly in collaboration and unified communications technology in the future according to commentators. IT market intelligence firm IDC showed that the unified communications market in Europe was worth £1.6bn in 2008, but is predicted to reach £8.1bn by 2013.
Have your say on this article
Newsletters
Latest stories from Finance and Reporting
Latest videos
You may also like
Finance and Reporting jobs
Technology Patent Wars
With the UK IT Awards 2012 now open for entries, one of last year's winners, Egress Software, talks about the event and what the achievement has meant for the business
Case studies from large organisations across all sectors
... And rich media, and flexible working, and peaks in traffic ...
Upcoming Events
Join us for this Computing web seminar, in which the Head of BI at the Co-operative Group Nick Colebourn will be explaining just how he reigned in the Group’s sprawling database estate and how significant savings were realised and data quality improved as a result.
Date: 31 May 2012
Time: 11:00 AM
Live June 13th 11:00am: Register now. During this web seminar we will be looking at the sorts of incidents that can bring data centres grinding to a halt and what can be done about them.
Date: 13 Jun 2012
Time: 11:00 am
Receive the latest jobs direct to your inbox
Are you being paid what you are worth?
