Tandberg in Takeover Talks
The news, issued on the Oslo stock exchange, sent Tandberg's share price up by 18.4 percent, to 116 Norwegian Kroner ($21.57), giving the company a market value of NOK13 billion ($2.4 billion).
Tandberg is one of the leading players in the videoconferencing systems market, which has attracted a lot of attention during the past year as major vendors such as Cisco Systems Inc. (Nasdaq: CSCO) enter the market and demand from large corporate users for next-generation conferencing systems grows. (See TP Stole the Show, Tandberg Telepresence, Nortel, Tandberg Team on Telepresence, Defining Telepresence, IP Videoconferencing: Picture Perfect at Last?, and Cisco Dials Up Videoconferencing.)
Oslo-based Tandberg has benefited from the increasing demand for systems that help companies increase productivity levels and reduce their travel costs: The Norwegian vendor recently announced a 36 percent increase in its second quarter revenues to $195 million, and a 24 percent increase in operating profit to $41.2 million, driven by a 22 percent increase in videoconferencing product shipments. (See Tandberg Reports Q2.)
The majority of its sales are in the Americas and the EMEA (Europe, Middle East, and Africa) region, which generated 45 percent and 42 percent of second quarter sales, respectively.
Tandberg, which bolstered its capabilities with a $270 million acquisition in September last year, is just one of a number of vendors pushing next-generation, immersive telepresence systems that enable participants to share documents and communicate as if they are in the same conference room, even though they could be thousands of miles away. (See Tandberg ODs on Codian, Cisco, Teliris Cheapen Telepresence, Cisco Rolls Out TP, BT Lines Up Telepresence Service, Teliris Does Cut-Price Telepresence, and AT&T Preps Telepresence Service.)
The company announced in May that it had sold its 10,000th personal telepresence unit. (See Tandberg Touts Milestone.)
Today's news is expected to generate rival interest from other bidders, and give the share price of Tandberg rival Polycom Inc. (Nasdaq: PLCM) a lift once the Nasdaq market opens for trading.
Find out more about the emerging telepresence market by checking out the LRTV video report below.
— Ray Le Maistre, International News Editor, Light Reading