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Canada’s Mitel Will Buy Polycom for $1.96 Billion

April 15, 2016, 11:36 AM UTC
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Photograph by Thomas Northcut — Getty Images

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.

Polycom (PLCM) stockholders will get $3.12 in cash and 1.31 Mitel (MITL) shares for each of their shares, or $13.68 based on the closing price of a Mitel common share on April 13.

The deal, worth $13.44 per share as of Thursday, represents a premium of 9.5 percent to Polycom’s last close.

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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.