Siris Capital To Acquire Polycom For $12.50/shr - Quick Facts

(RTTNews) - Polycom, Inc. (PLCM) announced its board has approved the termination of the company's previously announced merger agreement with Mitel Networks Corp. Polycom will pay Mitel the $60 million termination fee concurrently with termination. Upon Mitel's receipt of the termination fee, Polycom will enter into a new merger agreement with entities affiliated with Siris Capital Group, LLC. The all-cash transaction is valued at approximately $2.0 billion, including Polycom's outstanding debt.

Siris Capital Group is a private equity firm focused on making control investments in data, telecommunications, technology and technology-enabled business service companies in North America. The Siris merger is subject to customary closing conditions, including receipt of stockholder and regulatory approvals, and is expected to close in the third quarter of 2016.

In light of the termination of the agreement with Mitel, Polycom cancelled its special stockholder meeting currently scheduled for July 29, 2016 to vote on the merger with Mitel. Mitel's Annual General Meeting will be held on July 29, 2016. However, shareholders will no longer be asked to approve the issuance of Mitel common shares in connection with the acquisition of Polycom or increase the number of shares reserved for issuance under Mitel's equity incentive plan.

"Mitel shareholders, customers and employees know that we follow a rigorous and disciplined approach to mergers and acquisitions. The agreement announced on April 15 resulted from a detailed due diligence and negotiation process that we feel accurately determined fair value for Polycom. We feel it would not be in the best interest of Mitel shareholders to adjust the existing agreement," said Rich McBee, President and CEO of Mitel.