Private equity firm Siris Capital Group is set to acquire video conferencing company Polycom for $2 billion – beating Mitel’s $1.96 billion offer.
The $2 billion offer from Siris Capital Group is an all-cash deal. The $1.96 billion offer from Mitel involved cash and stock.
Mitel said it will not increase the consideration payable to Polycom. However, Polycom will need to pay Mitel the $60 million termination fee concurrently with termination of the agreement.
ALSO READ: Mitel to buy Polycom for $1.96 billion
Polycom will accept the superior offer from Siris Capital Group and terminate its merger agreement with Mitel announced on 15 April. The all-cash transaction valued at approximately $2 billion, including Polycom’s debt, representing a premium of 13.6 percent to the current value of Mitel’s offer, based on Mitel’s closing share price on July 7, 2016.
Market research agency IDC said the global enterprise video equipment market revenue in Q4 2015 was $627.5 million against $612 million in Q4 2014.
ALSO READ: Cisco, Huawei up videoconferencing share, Polycom dips
Polycom ranked second in enterprise videoconferencing equipment with 19.2 percent share in the fourth quarter of 2015. Enterprise networking giant Cisco Systems is the market leader in the global videoconferencing market with 45.3 percent share in Q4 2015.
Polycom, which competes with Cisco and Huawei, is not doing well in the global video conferencing market. While Polycom’s revenue rose 3.4 percent quarter over quarter and dipped 17.3 percent year over year, Cisco revenue from videoconferencing increased 21.1 percent quarter over quarter and 12.3 percent year over year, said IDC.