Deal encouraged by Elliott Management to spur consolidation in the telecom equipment industry
Story by Anne Steele, The Wall Street Journal – Photo by Bloomberg News
Mitel Networks Corp. agreed to acquire Polycom Inc. in a $1.8 billion cash-and-stock deal encouraged by activist investor Elliott Management Corp. to spur consolidation in the telecom equipment industry.
The deal—in which Polycom stockholders will receive $3.12 in cash and 1.31 Mitel shares for each Polycom share—values Polycom at $13.44 a share based on Wednesday’s close.
The combined company will operate under the Mitel name but maintain the Polycom brand. The new company, which will be based in Ottawa, Canada, will have about 7,700 employees globally. Mitel Chief Executive Richard McBee and Chief Financial Officer Steve Spooner will keep those roles. Polycom directors will take two seats on the Mitel board.
