Mitel has acquired Polycom for $1.96bn creating a combined $2.5bn revenue company with a global workforce of approximately 7,700 employees. The combined company will be headquartered in Ottawa, Canada, and will operate under the Mitel name while maintaining Polycom's global brand. Richard McBee, Mitel's Chief Executive Officer, will lead the enlarged organisation. Steve Spooner, Mitel's Chief Financial Officer, will also continue in that role.
On the closing of the proposed transaction, it is expected that Polycom directors will assume two seats on the Mitel board.
"Mitel has a simple vision to provide seamless communications and collaboration to customers," stated McBee. "To bring that vision to life we are methodically putting the puzzle pieces in place to provide a seamless customer experience across any device and any environment.
"The combined company will have the talent and technology needed to deliver integrated solutions to businesses and service providers across enterprise, mobile and cloud environments."
Peter Leav, President and CEO of Polycom, added: "Together, Polycom and Mitel expect to drive meaningful value for our shareholders, customers, partners and employees around the world.
"We look forward to working closely with the Mitel team to ensure a smooth transition and continued innovation to bring the workplace of the future to our customers."
The transaction is expected to close in the third quarter of this year, subject to stockholder approval by Polycom and Mitel, receipt of regulatory approval in certain jurisdictions and other customary closing conditions.
Following the closing of the transaction, former Polycom shareholders are expected to hold approximately 60% and current Mitel shareholders are expected to hold approximately 40% of the outstanding Mitel common shares.
While Mitel is still early in the process of closing the quarter ended March 31, 2016, it is expected that revenue and adjusted EBITDA margin will be within the company's prior guidance range.
Based on preliminary information available at this time, Mitel now expects quarterly non-GAAP revenue will be in the range of $270 million to $280 million and adjusted EBITDA margin will be in the range of 7.5% to 9.5%.