Polycom said today that it plans to end its merger agreement with technology company Mitel and will instead be purchased by private equity company Siris Capital Group for $2 billion. Siris offered $12.50 per share, which is an approximate 14 percent premium over Mitel’s offer, which included both cash and stock. Siris’ offer is a total cash offer. Mitel said today it would not match the offer from Siris, which it had the right to do under the previous agreement.
“Polycom has a 25-year history serving the audio and video collaboration needs of the most demanding enterprises and is a globally recognized brand synonymous with innovation and the highest quality. We are very excited for the opportunity to partner with Polycom and its leadership team, as the Company fits well with Siris’ investment focus on mission-critical telecommunications businesses,” said Dan Moloney, Siris executive partner in a statement released by Siris. “The industry is transitioning to a hybrid on-premise and cloud- based Unified Communications environment. We believe that as an independent private company, Polycom would be best positioned to continue its heritage as a best-in-class communications solutions provider to more than 400,000 companies and institutions, channel partners, and the evolving Unified Communications ecosystem.”
The new deal is expected to be completed in the third quarter of 2016. The offer is in place until July 15th, according to Siris’ press release, and is dependent upon a termination agreement from Mitel (which comes with a $60 milllion price tag), but it appears that all parties are in agreement about the new deal going forward and the old one ending.