The Plantronics acquisition isn’t without risk, but we give it a thumbs-up overall.
Early on March 28, the world learned that Plantronics (NYSE: PLT) and Polycom had entered into a definitive agreement under which Plantronics (the smaller of the two companies with annual revenue of ~ US $880 million) will acquire privately-held Polycom (annual revenue ~ US $1.1 billion) in a mixed cash/stock transaction valued at US $2 billion.
The deal has already been approved by the boards of directors of both companies, and subject to regulatory approvals is expected to close by the end of Q3 2018. After closing, Siris’ managing partner Frank Baker and Siris’ executive partner Daniel Moloney will join Plantronics Board of Directors.
For those of you needing a refresher, in September 2016, then publicly-held Polycom was acquired by private equity firm Siris Capital Group, for ~ US $2 billion.
What’s happened since then? It turns out, quite a lot.