After months of speculation, Mitel finally pulled the trigger on acquiring Polycom for $ 1.96 billion.
Competing in the unified communications (UC) market means having to butt heads with not just one, but two 800-pound gorillas named Cisco and Microsoft. The combined “MiPolycom” will be a much bigger, stronger, $ 2.5 billion revenue company—much more capable of competing with the big boys.
Mitel’s acquisition of Polycom is a bit of an unusual situation. Polycom is bigger than Mitel in both revenue and market cap, but Mitel was able to secure a $ 1.05 billion loan from Bank of America and Merrill Lynch to complete the deal. Under the terms of the agreement, Polycom will continue to run as a separate business unit under Mitel and will retain its brand. Rich McBee, Mitel’s CEO, will be the CEO of the combined organization, which will be headquartered in Ottawa, Canada.