Polycom receives USD 12.25 per share offer from private equity sponsor
Polycom [NASDAQ:PLCM], a California-based communications products and services provide, said in a regulatory filing that it has received a revised, non-binding proposal of USD 12.25 per share from the private equity sponsor described as “Sponsor 1”.
Canada-based Mitel (Nasdaq:MITL) (TSX:MNW) and Polycom in April entered into a definitive merger agreement in which Mitel would acquire all of the outstanding shares of Polycom common stock in a cash and stock transaction valued at approximately USD 1.96bn.
According to an earlier Bloomberg report, which cited unidentified individuals, "'Sponsor 1" is Siris Capital Group.
An excerpt from 8-K SEC filing follows:
On June 8, 2016, Polycom, Inc. (“Polycom”) announced that it has received a revised, non-binding proposal from a private equity sponsor that was previously described as “Sponsor 1” in the Registration Statement on Form S-4 filed by Mitel Networks Corporation (“Mitel”) with the Securities Exchange Commission on May 13, 2016. Under the terms of Sponsor 1’s revised proposal, Sponsor 1 would acquire 100% of the outstanding common stock of Polycom for an all-cash offer of USD 12.25 per share in a take-private transaction. Sponsor 1 indicated that the revised proposal would be funded, in part, with USD 650m of equity financing and USD 950m of debt financing. The revised proposal included a letter from a potential lender indicating that, subject to a number of conditions and contingencies, the potential lender was highly confident it could arrange the debt financing. Polycom continues to engage in discussions with Sponsor 1 with respect to the revised proposal.
Polycom’s board of directors, in consultation with its legal and financial advisors, will consider the outcome of its discussions or negotiations with Sponsor 1 to determine the course of action that is in the best interest of Polycom and its stockholders. There can be no assurance that discussions or negotiations will result in a binding proposal from Sponsor 1, that the Polycom board will determine that any such proposal is a “Company Superior Proposal” or that a transaction with Sponsor 1 will be approved or consummated on any particular terms or at all.
Polycom’s board of directors is not approving, endorsing, recommending or deeming advisable the proposal set forth in Sponsor 1’s offer and is not expressing any intent to do so. Polycom’s board has not changed its recommendation in support of Polycom’s merger with Mitel, and accordingly, Polycom’s board reaffirms its recommendation that Polycom’s stockholders vote in favor of the proposed merger with Mitel.
Source US Securities and Exchange Commission documents