Mitel steps up on videoconferencing and offers Polycom for $ 1.96 billion

by bold-lichterman

The canadian group Mitel announced the acquisition of the American company Polycom, specializing in audio and video communication and collaboration solutions. The operation, which involves an amount of 1.96 billion dollars (approximately 1.7 billion euros), should be completed during the third quarter of 2016 in cash and in shares.

Following this acquisition, the new group, which will be based in Ottawa, Canada, is expected to represent sales of $ 2.5 billion and 7,700 employees. The “Polycom” brand should be retained and two of its directors should obtain a seat on the board of directors of Mitel.

Founded in the 1990s, Polycom develops collaborative work and telepresence solutions based on videoconferencing. These allow remote teams to work together on projects via a multitude of devices (mobile, computer, etc.). On its website, the company indicates that it addresses several sectors, including health, administration, finance and even education. Polycom is also developing voice over IP communication offers.

The company is positioning itself in a market coveted by other major players, such as Cisco. As a result of this merger between Mitel and Polycom, “the combined company will have the talent and technology to truly deliver integrated solutions to businesses and service providers in enterprise, mobile and cloud environments,” said Rich McBee, the CEO of Mitel.