Audio electronics manufacturer, Plantronics, has today closed its $2 billion acquisition of Polycom – a deal set to significantly expand its Unified Communications and Collaboration (UCC) ecosystem.
Plantronics CEO, Joe Burton, affirms the acquisition will facilitate the development of one of the broadest portfolios of UCC endpoints.
Plantronics expects Polycom’s acquisition to be immediately accretive to Non-GAAP earnings per share, asserting it can achieve annual run-rate cost synergies of $75 million in 12 months.
The audio company is reportedly focused on building video and voice cloud solutions for office environments.
Tony Simonsen, Polycom VP ANZ, Japan & Korea, asserts the “new Plantronics” is better positioned to address “business productivity” and lift the “overall quality of communications and collaboration.”
“Together as one company, with teams in Australia and New Zealand and throughout the world, we will continue to put people’s needs at the center and boost the power of communications and collaboration,” he adds.Tarun Loomba, Executive VP, Polycom Product Management at Plantronics, affirms the company’s combined portfolio – encompassing “headsets, software, desk phones, audio and video conferencing, analytics and services” – will now “work together from Day 1.”
“I don’t know anyone else that can say that – that they have that whole portfolio.”
Plantronics today completed financing via $1.275 billion term loan priced at LIBOR plus 250 bps, maturing in July 2025.
Polycom was acquired for $2.0 billion, with total consideration consisting of around $1.63 billion cash and 6.35 million Plantronics shares.