Mitel has announced it has agreed a deal that will see it acquire leading global video conferencing and collaboration technology firm, Polycom.
In an email, Mitel said the deal, which is still subject to approval from shareholders and regulators, would help create a company that will have both the technology and the expertise needed to make communications and collaboration solutions more seamless.
The move is anticipated to be completed by the third quarter of the year and caps a several years of Mitel looking to capitalise on the apparent changes in the technology environment.
Mitel claims that combining the two companies will help create the only provider across enterprise, cloud and mobile with all the technology pieces, including voice and video, communications and collaboration.
The completion of the deal is likely to see more information emerge about what services will be made available to customers, but the footprint of the new firm could see 7,700 workers spread across five continents.
Perhaps most importantly, the new company will aim to provide a solid financial platform on which to build further growth.
Mitel estimates that the acquisition of Polycom will enable it to double in size, which in turn will give it a brighter financial outlook.
The company insists it will continue with its operations as normal and that both Mitel and Polycom will operate independently until a deal is completed.
Polycom is currently the only pure-play provider of unified collaborative solutions, holding an estimated 32 per cent share of the market, with its RealPresence platform becoming increasingly popular.
Analysts have already suggested that the deal will give the newly-formed company a greater competitive edge, allowing it to go up against larger rivals like Cisco and Huawei.
There is also speculation that the scope of Polycom's current deal with Microsoft, which supplies IP equipment to customers using Microsoft's Office 365 and Skype for Business products.
With an expected accreditation of the deal expected in 2017, Mitel expects to generate synergies of around $160 million (£111.27 million) by 2018.
Similarly, on a proforma basis, the combined firm generated an estimated $2.5 billion (£1.74 billion) in revenues in 2015 – a year that saw Mitel post revenues of $1.16 billion and an operating loss of $10.2 million, while Polycom posted total revenue of $1.27 billion and an operating profit of $86.1 million.