In looking back, the news of an impending Cisco-TANDBERG acquisition broke on October 1, immediately shaking up the landscape of the video communications industry. After a little more than two months of negotiations, 91% of TANDBERG shareholders have now accepted Cisco’s offer, exceeding the 90% condition outlined for the deal to go through.

When the initial proposition was made, only 30% of shareholders were in favor of the $3B offer, with percentages jumping to 40% when the figures increased to approximately $3.4B in late November.

As the second largest producer of video conferencing equipment, TANDBERG has reported an increase in momentum since October, introducing new endpoints and infrastructure products. With the acquisition, Cisco will now have the leverage to successfully sell lower-cost products to a wide range of markets.

Among the industry feedback:

• “Tandberg has very strong sales partners in videoconferencing that Cisco will benefit from.” – Wainhouse Research
• “The merger of the two companies will likely create an unstoppable force…This acquisition validates that video communications is well on its way to becoming a key enterprise communications application all the way from desktop to telepresence.”  - Frost & Sullivan
• This development continues to validate that video communications is quickly becoming a critical application for companies, and is a key component of any enterprise’s Unified Communications strategy.  – Michael Brandofino, Executive Vice President of Video Communications and Unified Collaboration, AVI-SPL

What are your thoughts on the acquisition?

View AVI-SPL’s videoconferencing and audio conferencing solutions »

The financial badminton match between Cisco and TANDBERG seems to be drawing to a close. Cisco has once again revised its offer (which is now up to around $3.4B) to purchase the videoconferencing leader, placing the birdie back in TANDBERG shareholders’ court. In addition to increasing the cash offer, Cisco has also offered to increase the interest payable on the offer price to a rate of 3.00% from its previous offer of 1.75%. According to a news release by Cisco, “this revised offer represents Cisco’s final price for this transaction.”

A total of more than 30% of shareholders have pre-accepted this offer based on the new price. These, combined with the previously announced acceptances, push the total to more than 40% acceptance of the sale. The rest of TANDBERG’s shareholders have until Dec. 1 to make a final decision.

Like many others in the AV industry, we’ll be watching from the sidelines, waiting for the birdie to fall.

To read Cisco’s full release, click here.

TANDBERG ’s shareholders thought $3 billion was too low of a bid to purchase the videoconferencing technology leader. It was originally reported that Cisco purchased TANDBERG in early October. Some analysts are saying Cisco has funds to increase the offer. Maybe Cisco will just purchase a smaller share? How does this affect Polycom and other TANDBERG competitors?

Click here to read more »

By Michael Brandofino
Executive Vice President of Video Communications and Unified Collaboration
AVI-SPL

And then there were two. Today’s news about Cisco’s acquisition of TANDBERG should come as no surprise to those familiar with the video communications industry. Cisco’s leap into the video space with the launch of its Telepresence platform a few years ago was a clear statement that video communications was the target of future growth for Cisco. However, it was clear that while Cisco introduced a competitive high-end system, they lacked a full range of products to compete effectively against Polycom and TANDBERG . This acquisition effectively leaves two major players who make up approximately 90% of the market with a handful of others making up the rest.

This development continues to validate that video communications is quickly becoming a critical application for companies and is a key component of any enterprise’s Unified Communications strategy. AVI-SPL is positioned well to capitalize on these developments, as we have strong relationships with both Cisco, TANDBERG and Polycom. We continue to invest in training and certifications so we can be at the forefront of technology and will help our customer navigate through the changes in the market, and the potential changes in technology stemming from the acquisition of TANDBERG by Cisco.

Click here to read more on this $3 billion acquisition. »

For featured TANDBERG products, click here. »

>For more information on videoconferencing services, click here. »

AVI-SPL has joined a select list in being credited as a TANDBERG Telepresence T3 Install and Maintenance Certified Partner in the Americas. With this designation, AVI-SPL can now offer installation and maintenance support for the award-winning TANDBERG Telepresence T3 system. This exclusive solution delivers an easy-to-use and natural forum for conference participants to meet, no matter their location.

“Our goal is to be the definitive leader in the video services industry,” said Mike Brandofino, EVP of Video and Unified Communications, AVI-SPL. “With each new certification, we continue to differentiate ourselves from the smaller players in the space who do not have the depth and the financial resources to invest in staying on top of the latest technologies.”

Click here to read more »

Alert! It has come to our attention that there is a computer virus named Green AV (”Green AntiVirus”) circulating on the internet. AVI-SPL in not affiliated with or affected by the Green AV hoax. All references to Green AV on any of AVI-SPL’s websites is relevant to the Green Audio Visual industry.

In his article, “Videoconferencing helps companies cut travel costs,” USA Today reporter Roger Yu profiles the cost savings being brought to law firm Lathrop & Gage. With 11 offices and 300 attorneys, Chief Information Officer Ben Weinberger estimates that he’ll only need to travel once this year to each office, versus the typical 25 times a year. He’s now relying on the six dedicated videoconference rooms set up in the main headquarters, with HD cameras, monitors and software provided by Polycom.

Substantial industry growth:

In 2008, the global videoconferencing market grew 24% to $2.4 billion, according to Roopam Jain, a technology analyst at Frost & Sullivan. The firm forecasts the market will more than double, to reach $5.7 billion by 2013.

Commentary by unified collaboration leaders TANDBERG and Polycom:

Recent tech breakthroughs have helped to loosen business customers’ purse strings, says Rick Snyder, president of TANDBERG ’s Americas operation. Internet bandwidth is more plentiful and affordable. HD cameras can cost less than $200. More sophisticated chips can compress HD images with crisper resolution. Some vendors can help clients better manage internal computer networks so that video gets priority. “The movement to HD has raised the bar,” Snyder says.

With costs falling, smaller businesses are being courted with systems that cost less than $10,000. Polycom and TANDBERG have introduced products featuring 32- to 52-inch monitors and HD cameras that can be installed in boardrooms or on PCs.

Click here to read the complete article. »

Alert! It has come to our attention that there is a computer virus named Green AV (”Green AntiVirus”) circulating on the internet. AVI-SPL in not affiliated with or affected by the Green AV hoax. All references to Green AV on any of AVI-SPL’s websites is relevant to the Green Audio Visual industry.

Do you know the carbon footprint produced by the day to day operations of your business? Would you like to know how to reduce your impact on the environment and save money at the same time? AVI-SPL and TANDBERG have partnered to provide a handy tool to help you do just that. A new Business Advantage Calculator tool will provide you with solutions that you can use to build a business case for reducing costs, cutting CO2 emissions, and improving productivity for your organization.

Today, videoconferencing technology (VTC) is more popular than ever. It is an efficient, money-saving and environmentally-friendly technology for distance communications. TANDBERG and AVI-SPL have teamed up to help you determine the right VTC solutions for your business. click here .

For a free customized analysis, click here.