Plantronics completed its acquisition of Polycom, which will enable Plantronics to deliver a portfolio of end points in the unified communications and collaboration ecosystem.
“We are pleased that Plantronics and Polycom are moving ahead as one company focused on putting people at the center of every collaboration experience,” said Joe Burton, Plantronics’ president and CEO. “Plantronics now offers an unparalleled portfolio of integrated, intelligent solutions that spans headsets, software, desk phones, audio and video conferencing, and cloud services.”
Plantronics expects the acquisition to be immediately accretive to non-GAAP earnings per share and believes it can achieve annual run-rate cost synergies of $75 million within 12 months. Non-GAAP earnings per share may exclude charges related to stock-based compensation, purchase accounting adjustments, acquisition and integration costs, restructuring and other related charges, litigation settlements, as well as the tax impact of these items and any discrete tax adjustments.
Under terms of the merger agreement, Plantronics acquired Polycom at a $2 billion enterprise value with the total consideration consisting of approximately $1.638 billion in cash and 6.352 million Plantronics shares, resulting in Triangle Private Holdings II, which was Polycom’s sole shareholder, owning approximately 16.0% of Plantronics following the acquisition.
Plantronics completed the financing of the transaction through a $1.275 billion term loan priced at LIBOR plus 250 bps, maturing in July 2025. Proceeds of the term loan, along with cash on hand, were used to finance the acquisition as well as pay related fees and expenses. Plantronics concurrently replaced its existing $100 million credit facility with Wells Fargo Bank with a new $100 million credit facility to support the transaction. Wells Fargo led the new term loan facility, as well as the replacement of the existing credit facility and will act as administrative agent for both the term loan and new credit facility.
Foley & Lardner acted as outside legal counsel for Plantronics.
