Plantronics Pounces with Polycom Purchase
TMC Group Editor-in-Chief Rich Tehrani fancies himself a futurist, but may also want to add clairvoyant to his moniker. In 2016, while exploring the in’s and out’s of Mitel acquiring Polycom Tehrani highlighted a merger with Plantronics being the more logical move for Polycom. Today, Tehrani’s point was underscored by a Plantronics purchase.
For a $2 billion price tag, Plantronics announced plans to acquire Polycom. In purchasing the video conferencing component provider, Plantronics is creating a more complete communications portfolio adding messaging systems, conferencing, telephone, email and more in a single system.
"Bringing Plantronics and Polycom together will broaden the breadth of solutions available to customers and partners and create a consistent end-user experience across many collaboration applications and devices. As one company, Plantronics and Polycom will make it even easier for all customers to solve big-business problems through human-to-human connections,” explained Mary T. McDowell, Chief Executive Officer, Polycom.
From a strategic standpoint, there are several points that stick out. In addition to enhancing the Plantronics portfolio with analytics and services offering enhanced visibility and insight, putting the organization in a formidable market position in that space, it enables the firm’s vision of creating next generation communication and collaboration experiences.
The Polycom purchase breaks down as follows: Plantronics will play $948 million in cash, deliver $358 million in shares and includes $690 million in debt – A minimal cost to plunge into a $40 billion market. Expected to close by the end of Q3 2018, the acquisition received unanimous approval by the boards of both companies.
The communications landscape is consolidating as providers pounce on market opportunity via mergers, acquisitions and innovation. As Plantronics puts Polycom in the portfolio, it will be interesting to see what moving and shaking comes next in the space.
Edited by Maurice Nagle