Global communications services provider Polycom (Nasdaq: PLCM) has signed a new agreement to be purchased and taken private by investment firm Siris Capital for $2 billion and terminate a previous $1.96 billion merger deal with Ottawa, Canada-based Mitel (Nasdaq: MITL) announced in April.
Polycom said Friday its board of directors received an offer letter from Siris on Thursday at $12.50 per share and deemed that submission as a superior proposal to Mitel’s bid.
Mitel has waived its right to renegotiate the merger agreement and is entitled to a $60 million breakup fee under that pact.
Polycom plans to pay the termination fee on Friday for its prior agreement with Mitel and proceed on the offer from Siris, which has an intended closure in the third quarter of 2016.
San Jose, Calif.-based Polycom provides cloud-based communications and other conferencing tools in enterprise markets that include public sector and commercial.
