Mitel entered into a merger agreement to acquire all outstanding shares of Polycom common stock in a transaction valued at approximately $1.96 billion. According to an 8-K filing, BofA Merrill Lynch committed $1.1 billion to support the transaction.
The combination of Mitel and Polycom will leverage Mitel’s leadership in global communications with Polycom’s portfolio in the conference and video collaboration market. The combined company will be headquartered in Ottawa, Canada and will operate under the Mitel name while maintaining Polycom’s global brand.
Richard McBee, Mitel’s CEO will lead the combined organization. Steve Spooner, Mitel’s CFO, will continue in that role. It is expected that Polycom directors will assume two seats on the Mitel board. Once merged, the combined company will have a global workforce of approximately 7,700.
“Mitel has a simple vision—to provide seamless communications and collaboration to customers. 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,” said McBee. “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.”