Mitel Networks Signs Definitive Deal To Buy Polycom In Cash And Stock Worth $1.96 Billion

Mitel Networks Corporation MITL disclosed that it struck a definite deal with Polycom Inc PLCM to acquire it for cash and stock transaction valued about $1.96 billion. According to the company, Polycom shareholders would be paid a cash of $3.12 and 1.31 shares of Mitel. The offer represented a 22 percent premium to April 5 price.

Mitel Networks indicated that the transaction would close in the third quarter subject to closing conditions. The company also took the opportunity to say that its revenue, as well as, adjusted EBITDA margin for the first quarter was within its previously guided range. As a result, the company now expects adjusted revenue of $270 - $280 million and adjusted EBITDA margin of 7.5–9.5 percent. That meant the company's revenue failed to meet the analysts' estimation of $283.80 million.

The two companies disclosed that the merged entity would operate under the Mitel name while maintaining Polycom's strong global brand. Mitel's CEO, Richard McBee, would lead the combined organization while its CFO, Steve Spooner, would continue in that role. Once the transaction is closed, it is expected that Polycom directors would assume two seats on the Mitel board.

McBee reacted to the acquisition by saying that "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."

He added that "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."