The acquisition of Polycom by Plantronics was funded by a $1.275 billion term loan.
The purchase sees Plantronics, a company specialising in headsets that was established in 1961, expand their business focus beyond manufacturing headsets and into the realm of video conferencing within the so-called unified communications and collaboration (UCC) ecosystem.
Conferencing and content collaboration company Polycom, meanwhile, was formed in 1990.
“Plantronics now offers an unparalleled portfolio of integrated, intelligent solutions that spans headsets, software, desk phones, audio and video conferencing, and cloud services,” declared the president and CEO of Plantronics, Joe Burton.
“This combined offering empowers people with the tools and flexibility they need to create the best experience when connecting to what is most important to them.”
The new partnership is expected to see an accretion of non-GAAP earnings being made effective immediately, as well as a combined saving of $75 million within the next 12 months.
Founder of Recon Research Ira M. Weinstein referred to the moment in which the acquisition of Polycom by Plantronics occurred as “a critical time when customers are searching for high-quality audio and video solutions that are easy to buy, easy to use, and easy to manage”, but says that he expects “great things” from the expansion of Plantronics.
“The company’s offerings work with on-premises, cloud (service provider) and hybrid platforms, giving customers the flexibility to choose their deployment method and cloud migration timing.”
“In addition, its global channel and technology partner ecosystem fosters both innovation and global reach.”
The purchase was completed after Plantronics’ fiscal Q1 2019, so the company will release the results of this quarter on a standalone basis on the 7th August 2018, and then go on to issue combined financial results for the September quarter.