Plantronics closes acquisition of Polycom with fresh USD 1.275 bln loan

News Broadband Global 4 JUL 2018
Plantronics closes acquisition of Polycom with fresh USD 1.275 bln loan
Plantronics has closed its USD 2.0 billion acquisition of Polycom, which it says will broaden its portfolio of end points in the Unified Communications and Collaboration (UCC) market. The payment consisted of USD 1.638 billion in cash and 6.352 million Plantronics shares. Following the deal, Triangle Private Holdings, which was Polycom’s sole shareholder, owns a stake of about 16 percent. 

Under the terms of the transaction, Triangle Private Holdings affiliate Siris has appointed two new members to the Plantronics board of directors, namely Frank Baker, a co-founder and managing partner, and Daniel Moloney, an executive partner. Plantronics confirmed the deal will be immediately accretive to adjusted earnings per share and that it will achieve annual run-rate cost synergies of USD 75 million within 12 months. 

The company also completed financing the transaction with a USD 1.275 billion loan. The loan was priced at Libor plus 250 bps, and will mature in July 2025. The company in addition replaced its existing USD 100 million credit facility with Wells Fargo, with a new USD 100 million credit facility. The company said it will release results for its fiscal first quarter 2019 on 7 August. These will still be on a standalone basis. A guidance for the September quarter will be issued however on a combined basis.

Categories:

Fixed

Companies:

Plantronics,  Polycom

Regions:

Global

Tags:

Enterprise equipment, Videoconferencing, Corporate strategy, Financial funding, M&A buyouts & divestments, Officers & directors

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