Tandberg acquisition builds on Cisco strength

Cisco Systems Inc. will broaden its teleconferencing capabilities with its planned $3 billion acquisition of Tandberg, another major videoconferencing player.

Cisco has built a strong business with its high-end Telepresence video conferencing system. Tandberg plays in that space but also has simpler, lower end conferencing products as well as software solutions to connect disparate systems, the New York Times reported.

The all cash deal is expected to close in the first half of 2010 after clearing European and U.S. regulatory hurdles.

Tandberg’s video endpoints and network infrastructure solutions will be integrated in Cisco’s collaboration architecture, the company said.

Once the deal closes, Tandberg’s chief executive officer, Fredrik Halvorsen will lead the new TelePresence Technology Group. He will report to Marthin De Beer, senior vice president of Cisco’s Emerging Technologies Group.