Plantronics today completed its $2 billion acquisition of Polycom, a process the company announced and started in late March.
The combined company's integrated solutions portfolio includes headsets, software, desk phones, audio and video conferencing, and cloud services, said Plantronics CEO and President Joe Burton.
"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 Weinstein, founder of Recon Research, in a prepared statement. "The company's offerings work with on-premises, cloud (service provider) and hybrid platforms, giving customers the flexibility to choose their deployment method and cloud migration timing. In addition, its global channel and technology partner ecosystem fosters both innovation and global reach. We're expecting great things in the future from the new and expanded Plantronics."
The $2 billion price tag consists of approximately $1.6 billion in cash and 6.35 million Plantronics shares, giving Polycom's sole shareholder, Triangle Private Holdings II, around a 16% stake in the combined company. Plantronics completed the financing of the transaction through a $1.3 billion loan, maturing in July 2025, the company said.
Plantronics said it expects the acquisition to be accretive immediately to Non-GAAP earnings per share, and that it should be able to achieve annual run-rate cost synergies of $75 million within the next 12 months.
Executive leadership, pulled from both companies, is as follows: :
Plantronics will release financial results for its fiscal Q1 2019 in early August. Plantronics will file its first quarterly report for the combined company for the September quarter.
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