Mitel to Buy Polycom in $1.96B Cash-and-Stock Deal

Mitel (Nasdaq: MITL) has agreed to purchase Polycom (Nasdaq: PLCM) for approximately $1.96 billion in cash and stock as both companies seek to establish a business that will offer communications and collaboration systems to enterprise customers.

Both companies expect to close the acquisition in the third quarter of 2016 and create a combined business with $2.5 billion in fiscal year 2015 pro forma revenue, Mitel and Polycom said Friday.

Mitel CEO Richard McBee and Steve Spooner, chief financial officer at Mitel, will both serve in their same positions at the combined company upon the deal’s closure.

The combined company will trade under the name of Mitel, be based in Ottawa, Canada and have approximately 7, 700 employees worldwide.

Mitel will pursue growth opportunities in cloud-based business communications, conference phones, audio, Internet Protocol/private branch exchange, open Session Initiation Protocol and video conferencing markets.

For every share in Polycom that company’s stockholders have, they will receive 1.31 shares in Mitel and a cash payment of $3.12 per share.

The transaction is subject to approvals of Polycom and Mitel shareholders as well as of regulatory agencies.

Bank of America Merrill Lynch and Morgan Stanley respectively served as financial advisers of Mitel and Polycom in the transaction.

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