Cisco is buying video-conferencing competitor Tandberg for $2.98m, the companies have said. Networking giant Cisco, which has a sizeable video-conferencing operation - will take all of Norwegian company Tandberg's outstanding shares, paying 11% over Wednesday's closing price of Kr153.5 ($26.57). The deal, which is subject to US regulatory approval, is expected to be completed in the first half of 2010. Cisco said that it would use the acquisition to 'expand its collaboration portfolio to offer more solutions to a greater number of customers'. John Chambers, Chairman and Chief Executive Officer, Cisco, said: "Collaboration is a $34 billion market and is growing rapidly -- enabled by networked Web 2.0 technologies. This acquisition showcases Cisco's financial strength and ability to quickly capture key market transitions for growth."