Plantronics to buy video conferencing gear maker Polycom for $2 billion

Plantronics to buy video conferencing gear maker Polycom for $2 billion

Headsets maker Plantronics said it would buy Polycom in a deal valued at $2 billion.

The deal comes two years after the video conferencing equipment maker was acquired by private-equity firm Siris Capital.

The cash-and-stock deal comprises about $948 million in cash and Plantronics shares worth $358 million, as well as $690 million in debt.

Headsets maker Plantronics said on Wednesday it would buy Polycom in a deal valued at $2 billion, two years after the video conferencing equipment maker was acquired by private-equity firm Siris Capital.

The cash-and-stock deal comprises about $948 million in cash and Plantronics shares worth $358 million, as well as $690 million in debt.

Polycom shareholders will own about 16 percent of the combined company.

The transaction is expected to immediately add to Plantronics' adjusted earnings and will save $75 million annually within one year of the deal's closing.

Plantronics said it intends to fund the cash portion of the offer with cash on hand and about $1.375 billion in debt financing.

Siris Capital had acquired Polycom for $1.7 billion in 2016, scuppering a three-month-old deal with Canada's Mitel Networks Corp.

Wells Fargo Securities is the lead financial adviser to Plantronics and Foley & Lardner is the legal adviser.

Moelis & Co. and Macquarie Capital are financial advisers to Polycom, while Sidley Austin its legal adviser.