OTTAWA—Mitel Networks Corp. has a friendly deal to buy California-based Polycom Inc. for US$1.96 billion in cash and stock.
Polycom is a global company based in San Jose that provides video teleconference systems and other content-sharing technology.
Ottawa-based Mitel says the addition of Polycom and its brands will complement its own expertise in voice communications for business.
“Mitel has a simple vision—to provide seamless communications and collaboration to customers,” chief executive Rich McBee said in a statement.
It’s offering Polycom shareholders US$3.12 cash and 1.31 Mitel shares for each share of Polycom stock, or the equivalent of US$13.68 based on the recent value of Mitel’s stock.
That would be 22 per cent above Polycom’s stock value prior to the announcement. The stock portion of the offer would also entitle Polycom to have two representatives on the Mitel board of directors.
The deal is subject to shareholder and regulatory approvals, but it’s expected to close in the third quarter.
After the transaction, Mitel would have a global workforce of 7,700 employees.
“Together, Polycom and Mitel expect to drive meaningful value for our shareholders, customers, partners and employees around the world,” said Polycom president and CEO Peter Leav.
“We look forward to working closely with the Mitel team to ensure a smooth transition and continued innovation to bring the workplace of the future to our customers.”