Communications provider Mitel will acquire videoconferencing vendor Polycom in a deal valued at approximately $US1.96 billion, as both companies fight for relevance in the changing enterprise world.
Terms of the deal, revealed overnight, will see the combined company headquartered in Ottawa, Canada, operating under the Mitel name while maintaining Polycom's individual global brand.
Following the completion of the acquisition, Mitel CEO Richard McBee will lead the combined organisation, while Mitel CFO Steve Spooner will also continue in that role.
On the closing of the proposed transaction, it is expected that Polycom directors will assume two seats on the Mitel board and once merged, the combined company will have a global workforce of approximately 7,700 employees.
“Mitel has a simple vision - to provide seamless communications and collaboration to customers,” McBee said.
“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.
“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.”
McBee said the communications and collaboration industry is undergoing a period of “intense change” that is rapidly redrawing the competitive landscape and breaking down barriers between previously discrete markets and technology domains.
For McBee, the combination of Mitel and Polycom will create a “new industry leader”.
“Together, Polycom and Mitel expect to drive meaningful value for our shareholders, customers, partners and employees around the world,” Polycom CEO and President Peter Leav said.
“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.”