Nathan Andrada – Fourth Estate Contributor
New York, NY, United States (4E) – Mitel Networks Corp., a maker of videoconferencing equipment and other hardware, agreed to pay $1.96bn in cash and stock to buy Polycom Inc. in a merger deal that Elliott Management Corp. urged both companies to explore.
The Ottawa-based company says the deal, announced Friday, with Polycom would create the world’s largest conference phone and business cloud communications company.
The deal still requires approval from shareholders but is expected to be completed in the third quarter of this year.
Elliott disclosed in October a 9.6 percent stake in Mitel and a 6.6 percent stake in Polycom . The activist investor pushed for the deal in order to accelerate consolidation in the telecom-equipment industry
The new company will have its headquarters in Mitel’s head office in Ottawa, Canada, and have around 7,700 employees worldwide. It will keep the Polycom brand but will operate under the Mitel name.