Mitel, the enterprise and mobile communications leader, has announced the acquisition of Polycom having bought all the outstanding shares of Polycom common stock in a cash and stock transaction valued at approximately $1.96bn.
The definitive merger agreement will see Polycom stockholders 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 13 April, 2016.
The partnership between Mitel and Polycom is aiming to create a new industry leader leveraging Mitel’s leadership in global communications and Polycom’s portfolio in conference and video collaboration.
The combined company will be headquartered in Ottawa, Canada, and will operate under the Mitel name while maintaining the Polycom brand. Richard McBee, Mitel's CEO will lead the combined organisation. Steve Spooner, Mitel's CFO, will also continue in that role. On the closing of the proposed transaction, it is expected that Polycom directors will assume two seats on the Mitel board. Once merged, the combined company will have a global workforce of approximately 7,700 employees.
"Mitel has a simple vision - to provide seamless communications and collaboration to customers. To bring that vision to life we are methodically putting the puzzle pieces in place to provide a seamless customer experience across any device and any environment," said Mitel CEO Rich McBee. "Polycom is one of the most respected brands in the world and is synonymous with the high quality and innovative conference and video capabilities that are now the norm of everyday collaboration. Together with industry-leading voice communications from Mitel, the combined company will have the talent and technology needed to truly deliver integrated solutions to businesses and service providers across enterprise, mobile and cloud environments."
"Together, Polycom and Mitel expect to drive meaningful value for our shareholders, customers, partners and employees around the world," said Peter Leav, president and CEO of Polycom. "We look forward to working closely with the Mitel team to ensure a smooth transition and continued innovation to bring the workplace of the future to our customers."