Mitel fails to take over Polycom after VC steps in

Polycom has pulled out of its acquisition by Mitel in favour of a rival deal with a venture capital company.

Upon Mitel’s receipt of the requisite termination fee payable under the company’s “merger agreement” with Mitel, Polycom will enter into a new takeover with Siris Capital Group.

Under the terms of the new agreement, outstanding shares of common stock of Polycom will be exchanged for $12.50 per share in cash at the completion of the takeover.

The Siris merger is is expected to close in the third quarter of 2016. Mitel waived its right to renegotiate its merger agreement with Polycom after receipt of notice of the Polycom board’s decision, which sees Polycom receiving an extra $40 million in the new $2 billion deal.

Mitel had previously hoped it would substantially increase its video conferencing and unified communications market share with the Polycom takeover.

@AntonySavvas