Is a Polycom-Mitel Merger on the Horizon?

An interesting article on CRN – Mitel CEO Talks Possible Polycom-Mitel Merger, M&A Strategy – quotes Mitel CEO Richard McBee as stating that a shareholder with a large stake in both companies is pushing them to explore a merger.

I don’t as yet have an opinion about the end result of such a merger, but the concept of a union makes some sense when you consider:

  • Both companies have suffered from lackluster financial results  (Mitel/Polycom)
  • It makes sense for Polycom to be aligned with a platform provider such as Mitel given that:
  • Privately held Yealink continues to eat into Polycom’s market share with successful copycat products at lower price points

Food for thought…