Menu
​Polycom pulls plug on Mitel merger as higher bidder takes vendor private

​Polycom pulls plug on Mitel merger as higher bidder takes vendor private

Video conferencing vendor dramatically terminates Mitel merger to go private.

Rich McBee - CEO and President, Mitel

Rich McBee - CEO and President, Mitel

Polycom has dramatically pulled the plug on Mitel’s proposed $US1.9 billion acquisition of the company, scrapping the deal to go private instead.

Following a tense day of deliberating at the video conferencing vendor, over a years' worth of negotiating is now off the table after the company accepted a rival $US2 billion bid from Siris Capital Group LLC, a private equity firm based in New York.

According to Polycom, its board of directors took less than 24 hours to decide on the move.

In a move which has left the channel stunned, Polycom has officially ended the merger agreement, paying Mitel the $60 million termination fee after the vendor refused to raise its offer.

The process was set in motion when Polycom’s board of directors received a “unilaterally binding offer” from Siris to acquire all outstanding shares of Polycom common stock for a price of $12.50 per share in cash.

Consequently, the Polycom board of directors determined that Siris’ proposal constituted a “Company Superior Proposal” under its merger agreement with Mitel.

“As a result, the Polycom board of directors authorized Polycom to terminate the Mitel merger agreement, pay the Mitel termination fee and enter into the Siris merger agreement,” a company statement read.

“Polycom intends to pay the Mitel termination fee today and enter into the Siris merger agreement immediately thereafter.”

As reported by ARN in April, communications provider Mitel announced plans to acquire the videoconferencing vendor in a deal valued at approximately $US1.96 billion, as both companies continue to fight for relevance in the changing enterprise world.

Terms of the deal would have seen the combined company headquartered in Ottawa, Canada, operating under the Mitel name while maintaining Polycom's individual global brand.

“Mitel shareholders, customers and employees know that we follow a rigorous and disciplined approach to mergers and acquisitions,” Mitel President and CEO, Rich McBee, said.

“The agreement announced on April 15 resulted from a detailed due diligence and negotiation process that we feel accurately determined fair value for Polycom. We feel it would not be in the best interest of Mitel shareholders to adjust the existing agreement.

“While I am disappointed that this particular transaction will not move forward, I am confident in Mitel's future as an industry leader and as a market consolidator.”

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags polycommitel

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments