Mitel to Buy Polycom for Almost $2 Billion

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Mitel Networks announced today it has agreed to acquire telephony gear maker Polycom for about $1.96 billion in a cash-and-stock deal, creating a company with combined sales of $2.5 billion and 7,700 employees.

The transaction was encouraged by activist investor Elliott Management Corp. to spur consolidation in the telecom equipment industry.

The deal—in which Polycom stockholders will receive $3.12 in cash and 1.31 Mitel shares for each Polycom share—values Polycom at $13.44 a share based on Wednesday’s close.

The combined company will operate under the Mitel and continue to be headquatered in Ottawa but maintain the Polycom brand.

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