Mitel Networks said Friday it would buy fellow voice and telephony gear maker Polycom for about $1.96 billion in cash and stock, satisfying a demand from hedge fund Elliott Management.
The deal, worth $13.44 per share as of Thursday, represents a premium of 9.5 percent to Polycom’s last close.
Get Data Sheet, Fortune’s technology newsletter.
Upon closing, former shareholders of San Jose, Calif.-based Polycom are expected to hold about 60 percent and current Mitel shareholders are expected to hold about 40 percent of Ottawa-based Mitel.
The combined company will have its headquarters in Canada and will operate under the Mitel name while retaining the Polycom brand.