Plantronics has completed its acquisition of Polycom for $2 billion as part of the strategy to strengthen its presence in enterprise mobility space.
The acquisition of Polycom will enable Plantronics to deliver end points in the Unified Communications and Collaboration (UCC) ecosystem.
Plantronics said it can achieve annual run-rate cost synergies of $75 million within 12 months following the acquisition of Polycom.
Plantronics acquired Polycom at $2 billion enterprise value with the consideration consisting of approximately $1.638 billion in cash and the balance in share.
Plantronics completed the financing of the transaction through $1.275 billion loan priced at LIBOR plus 250 bps, maturing in July 2025.
“Plantronics now offers an unparalleled portfolio of integrated, intelligent solutions that spans headsets, software, desk phones, audio and video conferencing, and cloud services,” said Joe Burton, president and chief executive officer of Plantronics.
With this acquisition, Plantronics is focused on voice, video, content, and cloud solutions for enterprises.
“The combination of Plantronics and Polycom comes at a critical time when customers are searching for high-quality audio and video solutions that are easy to buy, easy to use, and easy to manage,” said Ira M. Weinstein, founder of Recon Research.