Swedish wireless handset manufacturer Ericsson says it has received regulatory approval for its proposed $1.4 billion all-cash offer to acquire compression vendor Tandberg Television, and will probably close the deal this week.
Ericsson says it will proceed with the terms and conditions it proposed in February to acquire all of Tandberg Television's outstanding shares, topping a previous $1.2 billion cash-and-stock bid by Suwanee, Ga.-based broadband equipment manufacturer Arris. Settlement for the shares submitted in the voluntary public cash offer is expected to take place on or about April 25, 2007, says Ericsson.
After the settlement, Ericsson will proceed with a mandatory offer for the remaining shares in Tandberg Television as required by Norwegian securities law. Tandberg Television will also be delisted from the Oslo Stock Exchange.
Stockholm-based Ericsson says the Tandberg acquisition will allow it to tackle the lucrative IPTV market and expand Ericsson's customer base to include cable and satellite operators as well as broadcasters.