Siris bested Mitel's $1.96 billion offer, announced April 15, with a deal valued at about $2 billion in cash, or $12.50.
Now what: As such, Polycom's board of directors approved the termination of the Mitel deal - which will result in a requisite termination fee payable to Mitel per the terms of that agreement - in favor of entering into a new merger agreement with Triangle Private Holdings I, LLC and Triangle Private Merger Sub, Inc., both entities affiliated with Siris Capital Group. Polycom Inc (NASDAQ:PLCM) has declined 20.71% since December 1, 2015 and is downtrending. The gain of 287,000 jobs in June, which the Labor Department reported early Friday, July 8, 2016 was far more than economists were expecting.
Siris Capital, which had previously made an offer of $12.25 per share for Polycom, said it would fund the deal through a combination of equity and debt. Polycom will have to pay a termination fee of $60 million to Mitel.
"Polycom has a 25-year history serving the audio and video collaboration needs of the most demanding enterprises and is a globally recognized brand synonymous with innovation and the highest quality", said Dan Moloney, Siris executive partner.
Mitel is a communications company based in Kanata, Ontario.
For Siris, Polycom represents a solid investment that fits into its focus of investing in mission critical telecommuncations. In April, Mitel agreed to buy Polycom for around $1.98 billion in cash and stock. Any transaction would be subject to regulatory approval, shareholder approval and other customary closing conditions.
Siris agrees that a private equity buyout would be best for Polycom, which provides its communications solutions to over 400,000 companies and institutions. It has already secured committed financing comprising equity and debt. Their significant involvement allows Siris to partner with management to add value both operationally and strategically. Except as required by law, Mitel has no intention or obligation to update or to publicly announce the results of any revisions to any of the forward-looking statements to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements.
Some of the statements in this communication are forward-looking statements (or forward-looking information) within the meaning of applicable US and Canadian securities laws.
What remains to be seen is how long Polycom remains under Siris' ownership.
If a merger agreement is executed on the proposed terms, Polycom will file relevant materials with the Securities and Exchange Commission (the "SEC") in connection with the proposed merger, including a preliminary proxy statement on Schedule 14A.
In response, Mitel notified Polycom that it will not bump up the consideration payable to the latter's stockholders.