Polycom Inc (NASDAQ:PLCM) shares rose 12.70% to $12.25 on Friday on reports that the company will be acquired by Siris Capital for $12.50 per share or approximately $2 billion. The company has a market cap of $1.87 billion at 135.62 million shares outstanding.
Polycom Inc is a company that offers solutions for voice, video and content sharing and a line of support and service solutions. It operates in Americas; Europe, Middle East and Africa (EMEA), and Asia Pacific (APAC) geographic segments.
With this acquisition deal, Polycom Inc will have to terminate its existing merger agreement with Mitel Networks Corporation as the Siris proposal has been determined as a “Company Superior Proposal” by its Board of Directors. Polycom Inc has indicated its intention to promptly terminate its previous merger agreement with Mitel.
Polycom has a 25-year history serving the audio and video collaboration needs of the most demanding enterprises and is a globally recognized brand synonymous with innovation and the highest quality. We are very excited for the opportunity to partner with Polycom and its leadership team, as the Company fits well with Siris’ investment focus on mission-critical telecommunications businesses,” said Dan Moloney, Siris Executive Partner.
Moloney added that the industry is transitioning to a hybrid on-premise and cloud-based Unified Communications environment, which means that an independent private company such as Polycom would be well-positioned to continue its heritage as a best-in-class communications solutions provider to more than 400,000 companies, institutions, and channel partners.
Keep in mind, however, that the offer is only good until July 15, 2016 so Polycom Inc and Mitel will have to terminate its merger agreement within the week. Siris Capital is expecting this to occur today, subject to fulfilment of terms of course. Siris will be financing the acquisition through committed financing consisting of a combination of equity and debt.
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