Polycom has called off its plans to be acquired by Mitel Networks to create what would have been a $2.5 billion company, instead joining the Siris Capital Group family through a merger agreement with Triangle Private Holdings.
Polycom’s board of directors approved the termination of Mitel acquisition and Polycom sent Mitel the termination fee to officially end the process last week before entering into the deal with Siris, which is buying Polycom for $2 billion.
Stock prices for Mitel and Polycom soared when news of the canceled acquisition broke last week.
Under the terms of the new merger agreement between Polycom and Siris, outstanding shares of common stock of Polycom will be exchanged for $12.50 per share in cash at the completion of the merger. The merger is subject to customary closing conditions, including receipt of stockholder and regulatory approvals, and is expected to close in the third quarter of 2016.
The change from Mitel to Siris as the acquiring company came on July 7, when Polycom’s board of directors received a unilaterally binding offer from Siris to acquire all outstanding shares of Polycom common stock for a price of $12.50 per share in cash.
Polycom’s board of directors determined that Siris’ proposal constituted a “company superior proposal” under its merger agreement with Mitel, and Mitel waived its right to renegotiate its deal with Polycom.
Polycom cancelled its special stockholder meeting scheduled for July 29 to vote on the merger with Mitel and will set up a new date for stockholders to vote on the Siris deal closer to the official completion of that merger.