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Introduction

Mitel plans to acquire Polycom in a $1.96bn transaction set to close later this year. The move will plug obvious holes in both companies’ product portfolios but will complicate the long-standing partnerships each has relied on to deliver a complete business communications portfolio.

Highlights

  • Mitel's proposed acquisition of Polycom plug obvious holes in both companies' product portfolios and could potentially expand Mitel's position in Asia. The move could also make Polycom more appealing to small-to-medium enterprises (SMEs), and could dramatically improve the video conferencing capabilities of telephony-centric services that Mitel sells to both enterprises and service providers.
  • Mitel and Polycom's partnerships will likely be unaffected in the near term. However, before long, the partnerships, particularly the one between Polycom and Microsoft, are likely to change as the companies compete with each other more than they ever have previously.

Features and Benefits

  • This report examines the pros and cons of Mitel's plans to acquire Polycom.
  • This report explains how Polycom's partnership with Microsoft and Mitel's partnership with Vidyo are likely to be affected by the acquisition plans.

Key questions answered

  • How will Mitel and Polycom benefit from their plans to merge?
  • How will Mitel and Polycom's partnerships changed due to their plans to merge?

Table of contents

Ovum view

  • Summary
  • A more complete solution set
  • More complicated partnerships, particularly for Microsoft
  • A stronger platform for hosted UC services

Appendix

  • Further reading
  • Author

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