Mitel-Polycom merger is an effective solution for an evolving marketplace
In a cash-and-stock merger valued at an estimated $1.96 billion, global technology leader Mitel Networks Corporation recently announced its intentions to acquire fellow leader Polycom Inc. This merger will create a newly combined company that will keep Mitel's name, but appeal to Polycom's strong international brand and customer base.
What are the benefits of this merger?
With offices all around the world a headquarters in Ottawa, Canada, the new company will boast 7,700 employees across the globe. Polycom is currently based in San Jose, California. The combined company will have an estimated revenue of $2.5 billion, while Mitel will also have access to Polycom's 2,100 patents and more than 500 pending patents.
As the communication industry is revolutionizing its technology and approach to customer experience, this merger help both companies become innovative and customer-centered in a highly competitive marketplace. Currently, Mitel currently is an worldwide leader in organizational and mobile communications, with around 2 billion subscribers, allowing enterprises and individuals to work together, connect and supply services for their consumers.
Meanwhile, Polycom has a client portfolio of more than 400,000 businesses that benefit from its secure voice, video and content solutions. As a newly combined company, it will become No. 1 in business cloud communications, IP/PBX extensions in Europe, conference phones and open SIP sets. Meanwhile, it will be second in the world for installed audio and video conferencing. Overall, the combined company will have a financial platform to effectively grow and expand in a swiftly evolving industry.
Company leaders support this highly profitable merger
Mitel CEO Rich McBee said stated in a company press release that this merger is a major step toward providing "seamless communications and collaborations" for its customers across the world on any device. Both McBee and Peter Leav, President and CEO of Polycom, expect a smooth transition over the coming months in order to reach their combined goal of bringing further innovation into the workplace.
"Polycom is one of the most respected brands in the world and is synonymous with the high quality and innovative conference and video capabilities that are now the norm of everyday collaboration," McBee said. "Together with industry-leading voice communications from Mitel, the combined company will have the talent and technology needed to truly deliver integrated solutions to businesses and service providers across enterprise, mobile and cloud environments."
Both Mitel's and Polycom's Board of Directors have unanimously approved the terms of the deal, though Polycom board member Betsy Atkins announced her resignation effective the day of the merger's announcement. Atikins stated she is "highly supportive of the transaction" and is merely seeking new opportunities, including her recent election to Volvo's Board of Directors.