Rumors Swirl on a Polycom, Siemens Merger

A Los Angeles-based private equity firm is rumored to be resuming its push to merge Polycom (News - Alert) with Siemens Enterprise Communications.

According to an article in the Financial Times, The Gores Group sent a letter last week to Robert Hagerty (News - Alert), Polycom’s chairman and chief executive asking to reopen talks about a merger with Siemens. Gores owns a 51-percent stake in Siemens.

Polycom declined to comment and officials at Siemens (News - Alert) could not be immediately reached for comment.

Polycom is the largest maker of video-conferencing equipment and is the only large independent provider in the market after Cisco purchased Tandberg (News - Alert) last year.

Interest in Polycom is driven by increased interest by corporations in unified communications systems, which includes voice calls, text and e-mail, video conferencing and instant messaging.

A merger would combine Polycom’s video conferencing expertise with Siemens Enterprise’s focus on communications equipment and convergence technology, said industry experts. That could help develop video technology for use in a desktop setting, or even on mobile devices.

Gores initially approached Polycom last October about a deal but was rebuffed. Polycom and Siemens Enterprise entered into a strategic alliance in January.

The latest interest by Gores follows talks between Polycom and Apax Partners falling apart.