Cisco buying Norwegian video firm

Cisco said it would be 'more aggressive' over the next year

Computer group Cisco Systems has agreed to buy Norwegian video conferencing company Tandberg for $3bn (£1.9bn).

US giant Cisco, the world's largest maker of network equipment, said its expertise would improve Tandberg's service and boost its popularity.

Tandberg's board has recommended that its shareholders back the deal, which Cisco hopes to conclude in early 2010.

Shares in the Norwegian firm jumped 11%. They have almost doubled this year due to persistent takeover speculation.

Analyst Martin Hoff of Arctic Securities said Cisco was offering "a pretty good price", but that rival bids for Tandberg may come forward.

Cisco chief executive John Chambers said the firm would continue to be "more aggressive" over the next 12 months in pursuing other acquisitions.

The announcement came three days after US photocopier giant Xerox said it was buying Affiliated Computer Services (ACS), as takeover activity returned to the markets.