jump to navigation

Mitel announces intention to acquire Polycom April 18, 2016

Posted by Dominic Black in Uncategorized.

The deal is expected to close in Q3 for about $1.96 billion in cash and stock, and the purchase will add Polycom’s collaboration, videoconferencing and handset range to Mitel’s existing product set.  Their is an obvious synergy around expanding Mitel’s video and conferencing solutions and the ability to sell to their extensive current customer base and channels

Their joint press release states:

“The combination of Mitel and Polycom will create a new industry leader leveraging Mitel’s recognized leadership as a pioneer in global communications with Polycom’s well-known premium brand and industry-leading portfolio in the conference and video collaboration market.”

The acquisition also raises a couple of questions as well:

One interesting question that this will raise is how will Service Providers who are offering a rival solution to Mitel react to now selling Polycom handsets? This is especially relevant to those who are heavily aligned to Polycom, such as those selling Broadsoft solutions. Mitel has not always made friends with other cloud vendors with its very aggressive claims about market leadership, which certainly upset other vendors. Whether this opens opportunities for handset manufacturers such as Yealink, Cisco, Snom will be interesting to see in the next few months.

“It will be interesting to see whether Broadsoft, Microsoft and others will still be keen to partner and work with Mitel to promote Polycom handsets in the future” – Dominic Black, Cavell Group

In recent years the overall market for hardware based Video Conferencing had seen a general down turn as OTT and alternative solutions hit the market. This had lead Polycom to focus more on its core handset offering such as the VVX etc., where it has been extremely successful.  The synergies in this area of the market are probably less pronounced than in the Video Collaboration and conferencing market areas.

“Synergies in the Video Conferencing and Collaboration areas are more promoted than in the core handset area, where Polycom has been refocusing so it will be interesting to see how these synergies are leveraged.”

This acquisition is one of many we expect in the market this year, as traditional equipment providers are forced to realign their businesses in the line with Cloud and IP transformation. We expect to see continued consolidation both at the Service Provider and supplier level in coming months.

Read more: http://investor.mitel.com/releasedetail.cfm?ReleaseID=909405


No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: