Latest Telepresence and Visual Collaboration News:
Mitel Acquires Polycom -- The Good, the Bad, and the Ugly - Wainhouse Research's Take
Mitel Acquires Polycom -- The Good, the Bad, and the Ugly
While there are some potential synergies in this deal, there are many risks.
After MANY months of rumors, the news is finally in. Unified communications and telephony product/services vendor Mitel (MITL) has announced its intention to acquire collaboration, videoconferencing, and phone vendor Polycom (PLCM).
As was widely reported in the business press, the real discussions and due diligence began in October 2015 when Elliot Management (an investor in both companies) pushed for the two firms to combine.
The news is still hot off the presses. The paperwork was signed by Mitel yesterday morning, and by Polycom last night, and the press release went live at 6 AM EDT. The Wainhouse Research team was briefed only five minutes later ... yes, at 3:05 AM PT. While some of the details remain sketchy, here's what we know and think.
The deal is expected to close in Q3. The plan is that Polycom will retain its brand and its San Jose headquarters, and operate as an independent division within Mitel. Two Polycom board members will take positions on Mitel's board. Details about Polycom's executive staff have yet to be released. Once merged, the combined company will have a total workforce of about 7,700 employees and annual run rate of roughly $2.5 billion. Mitel expects the acquisition of Polycom to be accretive to its shareholders in 2017.
Add New Comment
Telepresence Options welcomes your comments! You may comment using your name and email (which will not be displayed), or you may connect with your Twitter, Facebook, Google+, or DISQUS account.
See what happens when YouTube and TPO come together at the Telepresence Options YouTube Channel.