Mitel to acquire Polycom for $1.96B, enhances conference, video collaboration portfolio

Mitel has struck a deal to acquire Polycom for $1.96 billion in cash and stock, giving it a set of new conference and video collaboration capabilities.

Under the terms of the agreement, Polycom stockholders will be entitled to $3.12 in cash and 1.31 Mitel common shares for each share of Polycom common stock, or $13.68 based on the closing price of a Mitel common share on April 13, 2016.

After meeting shareholder and regulatory approvals and other customary closing conditions, Mitel expects to close the acquisition in the third quarter.

The acquisition of Polycom is strategic for Mitel in that it will combine its expertise in voice communications networking with Polycom's well-known brand and portfolio in the conference and video collaboration market.

Upon completion, the combined company will be headquartered in Ottawa, Canada and will operate under the Mitel name while maintaining Polycom's global brand. Richard McBee, Mitel's CEO will lead the combined organization. Steve Spooner, Mitel's Chief Financial Officer, will also continue in that role.

In addition, it is expected that Polycom directors will assume two seats on the Mitel board. The combined company will have a global workforce of approximately 7,700 employees.

Polycom is just one in a string of acquisitions Mitel has made to bolster its portfolio.

Following two failed bids for rival PBX provider ShoreTel, Mitel has been actively enhancing its portfolio by acquiring Corvisa and Mavenir, two deals that enhanced its UC cloud and enterprise collaboration capabilities.

For more:
- see the release

Related articles:
ShoreTel acquires Corvisa for $8.5M, enhances UC cloud capabilities
Mitel names Nortel, Sonus veteran Durow as new CMO
Mitel acquires Mavenir for $560M, enhances mobile, enterprise collaboration capabilities
ShoreTel board rejects Mitel's latest buyout offer
Mitel raises its ShoreTel offer to $8.50 per share in cash, stock


Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.

Suggested Articles

Flume has launched with the goal of providing fast, affordable internet connections to at least 600,000 low-income residents in New York City.

Comcast announced that its Comcast RISE program is providing more than 700 Black-owned businesses support including technology upgrades.

IBM is planning to cull about 10,000 jobs in Europe in order to lower costs ahead of its split into two businesses.