In April of this year, unified communications vendor Polycom announced that it was being acquired by Mitel in a deal valued at $1.96 billion. That deal didn't close and instead Mitel was outbid today by Siris Capital.
According to Siris Capital, its offer of $12.50 per share values Polycom at $2 billion which is a 13 percent premium over the Mitel offer. Rich McBee, President and CEO of Mitel isn't happy that he was outbid for Polycom, though he emphasized in a statement that his company's bid accurately determined fair value for Polycom.
"While I am disappointed that this particular transaction will not move forward, I am confident in Mitel's future as an industry leader and as a market consolidator," McBee said in a statement. " I wish our colleagues at Polycom, with whom we have worked closely for the past several months, ongoing success in the future."
In accordance with the existing deal between Mitel and Polycom, Polycom has now paid Mitel a $60 million termination fee as a result of the deal falling apart. The new Siris deal will now move forward with an expected closing date in the third quarter of 2016.
For Siris, Polycom represents a solid investment that fits into its focus of investing in mission critical telecommuncations.
"The industry is transitioning to a hybrid on-premise and cloud-based Unified Communications environment," Dan Moloney, Siris Executive Partner said in a statement. " We believe that as an independent private company, Polycom would be best positioned to continue its heritage as a best-in-class communications solutions provider to more than 400,000 companies and institutions, channel partners, and the evolving Unified Communications ecosystem."
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist