Nasdaq-listed Cisco Systems has decided to acquire Norwegian videoconferencing company TANDBERG.

Under the arrangement, Cisco will start a cash tender offer to buy all the outstanding shares of TANDBERG for 153.5 Norwegian Kroner per share for an aggregate purchase price of approximately US$ 3 billion.

The quoted price represents 11% premium to the previous day closing price of TANDBERG'S stock.

TANDBERG provides videoconferencing solutions worldwide. The firm offers various tele-presence, high-definition (HD) video conferencing, and personal video conferencing products.

With this proposed acquisition, the world's dominant maker of Web routers and switches will expand its collaboration portfolio to offer more solutions to a greater number of customers, further accelerating market adoption globally.

The buyout is expected to close during the first half of calendar year 2010, subject to customary closing conditions.