Polycom and Mitel Each Post Solid Uptick From Private Equity Offer

By Chris Lange Updated Jan 13, 7:04AM EST · Published Jun 8, 10:10AM EDT

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Polycom and Mitel Each Post Solid Uptick From Private Equity Offer — © Thinkstock

Polycom Inc. (NASDAQ: PLCM) and Mitel Networks Corp. (NASDAQ: MITL) saw their shares take a small uptick in the face of their upcoming merger. The catalyst behind this uptick is an unsolicited offer for Polycom.

The company received a revised non-binding acquisition offer from a private equity firm, offering $12.25 per share in cash and valuing the transaction at $1.66 billion. However, the company reaffirmed its previous commitment to merge with Mitel Networks.

Under the previous agreement at Mitel, the company will be acquired for $3.12 per share in cash and 1.31 Mitel common shares for each unit of Polycom stock. At Tuesday’s closing price, this offer is worth $1.34 billion.

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Mitel detailed in a release:

The transaction that was announced on April 15, which received the unanimous support of both Boards of Directors and commitments from large shareholders of both companies, offers superior and greater upside to both Polycom and Mitel. Polycom shareholders specifically will own approximately 60% of a $2.4B, highly profitable, low leverage, strong cash flow company with the scale and portfolio breadth to compete. The deal also offers certainty of committed financing in an uncertain and volatile debt market, and attractive synergy value. Mitel’s acquisition of Polycom continues to be the best path forward and best strategic choice to create shareholder value, driven by attractive financial and operational scale.

Shares of Polycom were trading up 2% at $12.20 on Wednesday, with a consensus analyst price target of $13.09 and a 52-week trading range of $8.79 to $14.09.

Mitel shares traded up 1.8% at $6.91, in a 52-week range of $5.91 to $9.61. The consensus price target is $12.75.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.