Cisco Systems, the world`s major manufacturer of networking equipment has decided to acquire  Tandberg ASA for USD 2.97 billion, with the aim to spread out its lineup of video-conferencing products.

The sources informed that the company will pay 153.50 kroner a share in cash.

Tandberg is the World's largest maker of videoconferencing equipment.

As per official sources, the buy out will allow Cisco to speed up its push in the video- conferencing market, where the conglomerate already provides different models of its TelePresence system.

TelePresence -which typically comprises furniture, cameras, as well as giant screens - can transmit life-size images of up to six people.