Mitel sees deal for Polycom approved by US regulators

Mitel sees deal for Polycom approved by US regulators Content Categories Photos

​Regulators in the US have given the green light to Mitel's $1.96 billion (£1.34 billion) bid for video conferencing firm Polycom, with the Federal Trade Commission deciding to end the waiting period under an antitrust act.

The decision to terminate the waiting period early has subsequently paved the way for creating what Mitel has described as a larger more comprehensive communications company.

Mitel is also confident that the move will create a company that is capable of competing in the global market, although reports suggest there are still other barriers in need of overcoming before the deal can be completed.

However, Mitel is hopeful that the acquisition can be completed by the third quarter of the year.

Jesse Cohn, senior portfolio manager at Elliott and a driver of the hedge fund's growing activity in the tech industry, said in a statement after the deal was announced in April.

"The combined business will have far greater scale than either company alone, the ability to deliver a full array of products to customers, and the means to invest behind product areas that will provide stability and growth for the future.

"Financially, the combination will create a company with a strong balance sheet, meaningful synergies, and enormous cash flow generation that can be used to engage in value-generative M&A."

The unified communications landscape has shifted towards more mobile and cloud-based UC solutions, with Mitel's chief executive officer Rich McBee reportedly pushing the company towards both areas in recent years.