Mitel gazumped over Polycom

Videoconferencing vendor snubs $1.96bn deal with Mitel by accepting $2bn offer from Siris Capital

Videoconferencing vendor Polycom has shelved its agreed merger with Mitel after opting to put pen to paper on a $2bn (€1.81bn) offer from private equity house Siris Capital.

Having approached Polycom's board of directors with the offer the firm will acquire all outstanding shares of Polycom for $12.50 per share in cash.

Polycom is required to pay Mitel a termination fee under the "Company Superior Proposal" outlined in the Mitel agreement. The previous deal with Mitel announced in April totalled $1.96bn.

The new deal is subject to customary closing conditions and regulatory approvals and is set to close in the third quarter of this year. Morgan Stanley is acting as Polycom's financial advisor.

Mitel had previously claimed that its buyout of Polycom would make it Europe's largest PBX vendor as well as a global leader in areas including business cloud communications, conference phones and open SIP sets. The combined workforce of both firms would have brought its employee count to 7,700 people.