Business cloud and mobile communications company Mitel Networks has announced a deal to acquire Polycom, a US-based provider of video, voice and content collaboration products, for a total of USD 1.96 billion. Under the terms of the deal, Polycom stockholders will get USD 3.12 in cash and 1.31 Mitel shares for each of their shares, said Mitel, adding that the aim is to combine Mitel's global communications expertise with Polycom's well-known brand and portfolio in the conference and video collaboration market to create a company with EUR 2.5 billion in annual revenues.
The merged company will have its headquarters in Ottowa, Canada, and will operate under the Mitel name while retaining the Polycom brand. Once merged, the combined company will have a global workforce of around 7,700 employees, said Mitel, which expects the transaction to close in the third quarter of the year.
