Plantronics To Buy Polycom In $2.0 Bln Cash And Stock Deal - Quick Facts

(RTTNews) - Communications equipment company Plantronics (PLT) agreed Wednesday to acquire privately-held Polycom in a cash and stock deal valued at $2.0 billion enterprise value.

The acquisition of Polycom will see Plantronics becoming the partner of choice for the communications and collaboration ecosystem.

The deal, unanimously approved by the boards of directors of both companies, is expected to close by the end of the third calendar quarter of 2018, subject to regulatory approvals and other customary closing conditions.

Under terms of the deal, Plantronics will acquire Polycom for $2.0 billion enterprise value consisting of an estimated $690 million of net debt and an estimated $948 million in cash and 6.352 million Plantronics shares, valued at $362 million.

Plantronics intends to fund the cash portion of the consideration with cash on hand and about $1.375 billion in new, fully-committed debt financing, committed by Wells Fargo Bank and affiliates.

Plantronics expects to pay down a significant portion of the debt within the next several years with cash on the balance sheet and through cash generation.

Following the closure of the deal, Polycom shareholders will own about 16.0 percent of the combined company.

The deal is expected to be immediately accretive to adjusted earnings. Plantronics targets achieving annual run-rate cost synergies of $75 million within 12 months of transaction close.

Frank Baker, Founder and Managing Partner, Siris Capital, and Daniel Moloney, Executive Partner, Siris Capital, will join Plantronics Board of Directors.

Plantronics also reaffirmed its outlook for the fourth quarter, continuing to project earnings in a range of $0.75 to $0.85 per share and revenue between $205 million and $215 million.