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Mitel of Ottawa snaps up Polycom for $1.96B
COLLABORATION

Mitel of Ottawa snaps up Polycom for $1.96B 

The deal will see a merger of two companies that share strong positions in key market spaces that include: business cloud communications; IP/PBX extensions (Europe) conference phones; open SIP sets; video conferencing; and installed audio systems.

The two firms will have an installed customer base of more than 82 per cent of the world’s Fortune 500 companies and have a presence in five contents

“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, 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.

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.

The combined company will be headquartered in Ottawa, Canada, and will operate under the Mitel name while maintaining Polycom’s strong global brand. 

McBee, Mitel’s Chief Executive Officer will lead the combined organization and Steve Spooner, Mitel’s chief financial officer, 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.

 

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