Mitel Networks said Friday it would buy fellow voice and telephony gear maker Polycom for about $1.96 billion in cash and stock, satisfying a demand from hedge fund Elliott Management.
Polycom (PLCM) stockholders will get $3.12 in cash and 1.31 Mitel (MITL) shares for each of their shares, or $13.68 based on the closing price of a Mitel common share on April 13.
The deal, worth $13.44 per share as of Thursday, represents a premium of 9.5 percent to Polycom’s last close.
Get Data Sheet, Coins2Day’s technology newsletter.
Upon closing, former shareholders of San Jose, Calif.-based Polycom are expected to hold about 60 percent and current Mitel shareholders are expected to hold about 40 percent of Ottawa-based Mitel.
The combined company will have its headquarters in Canada and will operate under the Mitel name while retaining the Polycom brand.