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.
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