Polycom

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History

2018

Payment of $37 million to the authorities for bribing officials

On December 26, 2018, Plantronics announced a settlement of an investigation conducted by the US authorities in connection with Polycom's suspicion of bribery. Under the terms of the agreement, Plantronics will pay almost $37 million to the Securities and Exchange Commission (SEC), which will stop the investigation and will not bring charges. Read more here.

Plantronics-Polycom Deal Completion

Plantronics on July 3, 2018 announced the completion of the acquisition of Polycom. The transaction value was $2 billion. At the same time, part of the amount, approximately $1.64 billion, was paid in cash, and the other part ($6.35 million) was paid in Plantronics shares. As a result, Triangle Private Holdings II, LLC, the sole shareholder of Polycom, took possession of a 16% stake in Plantronics.

Under the terms of the transaction, Frank Baker, co-founder and managing partner of Siris Capital Group (a structure of Triangle Private Holdings II, LLC), and Daniel Moloney, executive partner of Siris Capital Group, are included in the Plantronics Board of Directors, with their nominations nominated by Plantronics shareholders for election to the Board of Directors at the 2018 Annual Shareholders Meeting of the company.

By teaming up with Polycom, Plantronics will be able to present an expanded offering in communication and collaboration solutions in office, home and on the go. The company's portfolio includes: headphones, software, office phones, audio and video conferencing, as well as analytical and service services.

Our combined portfolio includes complementary solutions that cover all areas of business, regardless of scale or industry. Together, Plantronics and Polycom will achieve more as a single company, "said Marco Landi, Polycom's senior vice president in the EMEA and APAC regions.

Plantronics buys Polycom for $2 billion

On March 28, 2018, a major manufacturer of telephone headsets Plantronics announced the purchase of Polycom for $2 billion. The company is changing ownership for the second time in less than two years.

Plantronics will pay for the acquisition with its own funds ($948 million), shares ($358 million) and taking on Polycom's debts ($690 million). Approximately $1.375 billion of funds will be credit. About 16% of the combined company will be owned by Polycom shareholders.

Plantronics bought Polycomsa $2 billion, which will create one of the leaders in the unified communications market

The deal is scheduled to close by the end of the third quarter of 2018. It has already been approved by the boards of directors of both companies. Regulators should also voice their decisions.

Plantronics buys Polycom from private equity fund Siris Capital, which in turn acquired Polycom for $2 billion in mid-2016, outbid Canadian telecommunications solutions maker  Mitel Networks.

After completing the transaction, it will increase Plantronics' profit, and will also allow the company to save about $75 million each year.

The company, which will emerge from the merger of Plantronics and Polycom, will become a "gold standard for communication and collaboration" and offer even stronger business solutions to partners, according to a press release.

Together, we can offer greater integration and provide overall architectural promotion of communications and collaboration products. This is a great opportunity to enable us to address larger, faster growing markets and leverage the synergy of Plantronics and Polycom to drive innovation, a Plantronics spokesperson told CRN.

The publication notes that the merger of companies will create a manufacturer of unified communications, which has one of the widest product portfolios that can complement each other. Frost and Sullivan analysts estimate the volume of this market at $40 billion.^[1]

2016

Gartner and IDC recognize Polycom as a leader in the video conferencing market

Gartner and IDC independently recognized Polycom as the leader in the video conferencing market. For the second year in a row, Polycom remained in the Gartner "magic quadrant" category for group work video systems (Gartner's July 2016 Group Video Systems Magic Quadrant). The company also holds the position of the leader in the IDC MarketScape Worldwide Enterprise Videoconferencing Equipment 2016 Vendor Assessment for the third year in a row.

In a study by IDC MarketScape, analysts noted that Polycom "has repeatedly received recognition for its best approach to the video conferencing market in the segment." Experts emphasized that Polycom solutions "directly integrate with MicrosoftSkype for Business (formerly Lync) without interfacing, which simplifies operation, reduces costs and creates a single workflow for better user interaction."

Siris Capital buys Polycom for $2bn

On July 8, 2016, Polycom announced that the company would be sold to private equity firm Siris Capital Group, rather than Canadian telecommunications solutions maker Mitel Networks, which was agreed in April.

According to Bloomberg, citing a joint statement by Polycom and Siris Capital, the deal will cost $12.5 per share of Polycom, which is 14% more than Mitel offered, taking into account company quotes by the close of the exchange on July 7, 2016.

Siris Capital will pay about $2 billion in cash for this takeover, while Mitel was ready to provide $1.96 billion in the form of cash and its own shares.

Polycom sells to private investors for $2bn

A month after the announcement of the merger between Mitel and Polycom, the latter received an offer from Siris Capital, which discussed the purchase of a manufacturer of video conferencing equipment for $14.5 per share.

Mitel said at the time that it would not raise the price offered. Polycom's board decided to consider Mitel's offer separately, after which it rejected it and refused to participate in further talks with Mitel.

The contract with Siris Capital, which was announced on July 8, 2016, officially breaks the merger agreement with Mitel, as a result of which Polycom will have to pay a penalty of $60 million to the failed buyer.

The board agreed to Siris Capital's offer because it was higher than Mitel's, according to a statement from Polycom. It is planned to close the deal with private investors in the third quarter of 2016.

Morgan Stanley is selected as Polycom's financial adviser as part of the sale of the company, and Siris Capital will be advised by specialists from Moelis, Evercore and Macquarie Capital.

The announcement of a new buyer of Polycom led to a 13 percent increase in the value of the company's shares - to $12.3 during trading before the official opening of the exchange session on July 8, 2016. Mitel jumped 22%.^[2]

Mitel offered $1.96 billion for the purchase of Polycom

On April 15, 2016, Canadian telecommunications solutions maker Mitel Networks announced the purchase of Polycom for almost $2 billion. This merger of companies was pushed by the notorious activist investor Elliott Management.

Under the terms of the agreement, Mitel will pay Polycom shareholders $3.12 in cash and its shares in the amount of 1.31 pieces for each security they own. Former Polycom shareholders will own a 60% stake in Mitel, while two members of Polycom's board will join Mitel's board. The announced deal is interesting because a less expensive company buys a company with a higher market capitalization.

Mitel bought Polycom for $2 billion

Taking this into account, the amount of the acquisition of Polycom is estimated at $1.96 billion. It is planned to close it in the third quarter of 2016. However, first, the consolidation of assets must be approved by shareholders and regulators.^[3]

In terms of Polycom shares as of April 14, 2016, the transaction value will be $13.44, which is 9.5% more compared to the level at which the company's quotes stopped on the eve of the announcement of its sale. During trading before the opening of the exchange session on April 15, 2016, Polycom securities rose 7.7% to $13.22, and Mitel's share price did not change ($7.88), The Wall Street Journal newspaper notes.^[4]

The combined company, which will have a headcount of about 7,000, will be headquartered in Canada and operate under the Mitel brand. At the same time, the Polycom brand will remain on the market. Thanks to the merger of assets, companies expect to save about $160 million. Mitel CEO Richard McBee and CFO Steve Spooner will retain their positions.

A major shareholder in both companies, hedge fund Elliott Management, was calling for a merger between Mitel and Polycom. He is known for buying shares in large IT companies, and then actively encouraging their leaders to carry out restructuring in order to increase shareholder value.

2013: Peter Liv is the new CEO of Polycom

In December 2013, Peter Liv was appointed CEO and President of Polycom, a company specializing in the development and sales of video conferencing systems. He also joined the board of directors of Polycom. Read more here.

2011

Revenue growth to $1.5 billion

At the end of the fiscal year (as per comp. as of December 31, 2011) net revenue reached $1.5 billion. A year earlier, this figure was $1.2 billion. GAAP net income in fiscal 2011 was $136 million (75 cents per diluted share), versus $68 million (39 cents per diluted share) for the previous fiscal year. The corporation's non-GAAP net income for the fiscal year as of December 31, 2011 was $213 million. United States ($1.18 per diluted share), compared with $133 million. United States ($0.75 per diluted share) for the same period of the previous year.

Polycom will make systems mobile

On October 14, 2011, video conferencing solutions provider Polycom acquired ViVu, video conferencing software embedded in website mechanisms. The amount of the transaction was not disclosed.

With this acquisition, Polycom is expanding its portfolio of video conferencing, unified communications solutions - UC (Unified Communications), creating additional opportunities for porting them to browsers and mobile devices. To

The company will use ViVu technology for its further integration into Internet sites to provide web video conferencing and web applications of client services for healthcare, corporate collaboration and other purposes. The acquisition closed in cash last week, Polycom said.

Tom Carhart, vice president of business development at Polycom, noted that this software provides an HD video session at 1080p resolution (progressive scan) in accordance with the capabilities of the client's equipment and the state of the network. In his opinion, together with the recently reached agreement to acquire the high-end video conferencing business from HP, Polycom will be able to provide customers with a wide range of solutions, including systems based on television presence in the premises, for desktops, laptops, mobile devices and browsers.

Specialized hardware and software complexes and video conferencing solutions are rapidly expanding to new platforms, making them more mobile and affordable. Not so long ago, Polycom, Radvision and Logitech announced the release of video products for iOS devices from Apple. On Monday, Vidyo introduced VidyoMobile software for the iPhone 4S, which simultaneously connects at least four participants on the screen and includes a zoom function to increase the size of the image.

ViVu's business was founded in 2008. The company has about 25 employees, however, it supplies its technology to large companies, including Tibco and Thomson Reuters. Last year, she announced a plug-in for Skype, with which it is possible to implement a video conference for eight users of a well-known Internet service. ViVu is based in Cupertino, California and also has offices in Bengaluru.

It is assumed that Polycom will continue to implement the ViVu business model in terms of selling its software to customers under its own name. Later, the company integrates ViVu technology into the Polycom software platform - RealPresence, designed for all types of customers.

Carhart emphasized that ViVu software allows a customer to start a video call, join a conference, or call a support representative with one click on an e-commerce site. At the same time, you do not need to open even another browser window. According to him, a similar approach can be used to organize direct contact between the doctor and the patient.

New Video Software Development Strategy

On September 20, 2011, Polycom announced a software development strategy aimed at introducing high-definition video communication to the widest possible range of business, video, mobile and social media applications through a standards-based infrastructure hosted on the organization's network, on an external resource or provided by a service provider (from a "video cloud").

According to Polycom, this strategy will take the combined communications market to a whole new level, accelerate the distribution of Polycom software (from infrastructure to user) and make Polycom a "default" provider for customers and partners looking for open combined communications (UC) and HD video solutions that can seamlessly interact regardless of application, protocol, call management system or endpoint. The software development strategy is a key component of the corporation's growth strategy, which aims to increase the company's turnover over the coming years from the expected $1.5 billion to $3 billion.

Polycom's software development strategy is based on four key initiatives:

• Create a full-featured, high-definition video collaboration software platform that supports cross-platform collaboration
• Expanding the partner ecosystem and high-definition video collaboration on mobile and social platforms
• Creation of services of the first open high-definition "video coating" with the participation of suppliers
• Continuous increase in industry standards: creating software innovations that fundamentally change existing schemes of work and cooperation

A fundamental component of Polycom's strategy is the desire for open standards-based communication between all elements of the communication environment, including multiple solutions, vendors, networks, and connection protocols. This gives customers the ability to choose the best instant messaging, presence indication, call management, web conferencing, video collaboration, mobile services and social video solutions developed by hundreds of diverse providers, with the confidence that the solutions can:

• Interact seamlessly with each other within normal enterprise workflows
• provide backward compatibility with old systems and direct compatibility with new systems;
• be protocol independent and process signaling and media protocols such as H.263, H.264, H.264 High Profile, SIP, SVC, VP8, TIP (Cisco), and RTV (Microsoft Corp.);
• provide the necessary scalability, reliability and security of systems, as well as realistic image quality that corresponds to the concept of high-definition video communication.

Purchase of HP VKS business for $89 million

In June 2011, Polycom bought the business for video conferencings HP $89 million. All development and service went to AEROSPACE FORCES the vendor, HP became their exclusive reseller. Experts believe that for HP, the non-core direction was not profitable, and Polycom closed holes in its line as a result of the deal and is now in a better position than the buyer. Tandberg Cisco

Hewlett-Packard (HP) sold its video collaboration business (Visual Collaboration, VC). To close the transaction, which is planned for the 3rd quarter of 2011, it remains to obtain regulatory approval and fulfill other formalities. The agreement also stipulates that Polycom becomes HP's exclusive partner in telepresence and unified communications (Unified Communications, UC) systems. I.e. HP will now be able to use only Polycom solutions to install them both internally and for resale. The latter is important because, among other things, HP becomes a reseller of Polycom devices, software and services. In addition, the applications of the VKS vendor will be ported to the OS for webOS mobile devices, currently being developed by HP (after the takeover of Palm).

Most important acquisitions and mergers

Polycom is actively pursuing an M&A strategy. In March 2011, Polycom announced the purchase of Accord Technologies (video content management. In March 2007, SpectraLink and KIRK telecom A/S (wireless telephony in the office) were acquired, in January 2007 - Destiny Conferencing (immersion in telepresence).

In August 2005, she bought DST Media (video business networks in China), in January 2004 - Voyant Technologies (voice conferencing technologies and network collaboration solutions), in January 2003 - VCAS software from AGT (video planning and management software). Previously, Polycom was bought by MeetU (web-based collaboration software), ASPI Digital (built-in voice systems for premises), PictureTel (video communication systems on PC), Circa Communications (IP telephony products), Accord Networks (network infrastructure systems) and ViaVideo (video communication systems devices).

2010

Revenue growth by 25% to $1.2 billion

Polycom's revenue in 2010 amounted to $1.2 billion, which is 25% more than in 2009. These achievements are due to both the successful sales channels and the company's balanced product line. In 2010, a large number of new devices and software systems were released, as well as a large-scale implementation of the H.264 High Profile, due to which the company's customers were able to save significant funds on the channel infrastructure.

At this time, the company produces equipment under several trademarks:

• HDX - High Definition video conferencing systems,
• VSX - video conferencing terminal equipment for halls and meeting rooms,
• ReadiSeries, RMX - network equipment for organizing and recording multi-point video conferencing,
• Polycom WebOffice, Global Management System, WebCommander, PathNavigator - software for managing and organizing audio and video conferencing,
• SoundStation, SoundPoint - conference phones for holding audio conferences (in particular, for working in IP networks).

Microsoft Agreement

In August 2010, a cooperation agreement was concluded between Polycom and Microsoft in the field of joint communications. Polycom has a wide range of voice and video solutions integrated with Microsoft UC. That is why Polycom is one of Microsoft's key partners in the field of unified communications. As part of the strategic agreement, both companies intend to invest in software development and marketing initiatives. Shared resources, as well as close cooperation, will help Microsoft and Polycom create full and fully integrated UC solutions. By integrating email, voice and instant messaging, and conference solutions, Microsoft and Polycom give users the ability to be in touch anywhere, anytime.

Notes