The latest addition to Cisco's stable of acquired businesses is Norwegian teleconference expert Tandberg. This Tandberg is related to, but not to be confused with, Ericsson
TelePresence is a longtime focus from Cisco as well, and Tandberg's low-to-high-end conferencing solutions will dovetail perfectly with Cisco's existing TelePresence products and networking expertise. These video conferencing solutions also make sense together with Cisco's last major buyout, the $3.2 billion grab for online collaboration specialist WebEx; video conferencing and collaboration technologies both enable new, highly efficient ways of doing business on a global scale.
Cisco expects to breeze through regulatory approvals, and Tandberg is getting congratulations on the deal from several major shareholders. Unlike the protracted romance between Sun Microsystems
Networked collaboration is a market with $34 billion of annual sales potential, according to Cisco CEO John Chambers, and Tandberg gives Cisco another big leg up on competitors like Microsoft
This is a smart buy, financed with $3 billion of Cisco cash in foreign banks that due to tax considerations would be expensive to bring back home to the States. Tandberg's technology and Cisco's ginormous scale should put the TelePresence market on a whole new growth trajectory. And all this high-quality video traffic slinging around the world plays right into Cisco's network sales. It all makes sense.
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