Private equity group Apax Partners has been in talks with video conferencing equipment maker Polycom on a deal to take the company private, people familiar with the matter told the Financial Times. The two have been in talks since November on a deal which could value Polycom at around USD 37 per share or over USD 3 billion total. However, people close to the situation warned that a deal could now prove unfeasible, given the surge in Polycom's shares since talks began. The price would represent more than a 22 percent premium on Polycom's current share price of around USD 30.30. Since the beginning of November, Polycom shares have risen more than 40 percent, which prompted further negotiation earlier this year between the two sides. At USD 37 a share, a deal would value Polycom at about 15.7 times the company's forecast EBITDA, only slightly above where recent deals, such as Cisco's acquisition of Tandberg, have been struck. Polycom has no debt. Polycom and Apax Partners both declined to comment.
