Mitel pulls bid for Polycom after $2B offer trumped by New York firm

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Mitel Networks Friday ended its $2-billion U.S. merger agreement with California-based Polycom after a New York private equity group, Siris Capital, made a similar-size offer.

Polycom’s directors opted for the Siris deal in large part because it was 100-per-cent cash and therefore less risky. The Mitel proposal involved about $500 million U.S. cash and $1.5 billion U.S. in Mitel shares.

The loss of Polycom is a big setback for Mitel’s ambitions to become a significant global player in the world of telecommunications networking.

Had the deal with Polycom closed as scheduled later this month, it would have created a $2.5-billion-a-year multinational with 7,700 employees and significant operations across Europe, the U.S. and Asia.



Pre-merger, Mitel had revenues of $1.1 billion U.S. annually and supported a workforce of 4,500.

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