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The
PE firm, Siris Capital Group, offered $12.50 per share in cash
for Polycom, representing a premium of 15 percent to Polycom's
Thursday close.
Polycom's shares rose about 13.6 percent to $12.35 in premarket
trading on Friday, just shy of the offer price. Mitel shares
jumped 22 percent.
The deal could be a setback for activist investor Elliott
Management, which disclosed stakes in both companies last
October and subsequently championed a deal between the two.
Mitel said in April it would buy Polycom for about $1.96 billion
in cash and stock.
Mitel said on Friday it would not raise its offer for Polycom
and waived its right to match Siris' offer.
As a result, San Jose, California-based Polycom will pay Mitel a
termination fee of $60 million.
Siris Capital, which had previously made an offer of $12.25 per
share for Polycom, said it would fund the deal through a
combination of equity and debt.
Elliott disclosed a stake of 6.6 percent in Polycom in October
and a 12 percent stake in Mitel in May.
Morgan Stanley was the financial adviser to Polycom, while
Moelis, Evercore and Macquarie Capital were advisers to Siris
Capital Group.
(Reporting by Narottam Medhora in Bengaluru; Editing by
Saumyadeb Chakrabarty)
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