<article>Video conferencing equipment maker <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Polycom+Inc">Polycom Inc</a> said it agreed to be bought by a private equity firm for about $1.7 billion, scrapping a three-month old deal with Canada&#8217;s <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Mitel+Networks+Corp">Mitel Networks Corp</a>.</article>

Video conferencing equipment maker <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Polycom+Inc">Polycom Inc</a> said it agreed to be bought by a private equity firm for about $1.7 billion, scrapping a three-month old deal with Canada&#8217;s <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Mitel+Networks+Corp">Mitel Networks Corp</a>.
The PE firm, <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Siris+Capital+Group">Siris Capital Group</a>, offered $12.50 per share in cash for Polycom, representing a premium of 15 percent to Polycom&#8217;s Thursday close.
Polycom&#8217;s shares rose about 13.6 percent to $12.35 in premarket trading on Friday, just shy of the offer price. Mitel shares jumped 22 percent.
The deal could be a setback for activist investor Elliott Management, which disclosed stakes in both companies last October and subsequently championed a deal between the two.
Mitel said in April it would buy Polycom for about $1.96 billion in cash and stock.
Mitel said on Friday it would not raise its offer for Polycom and waived its right to match Siris&#8217; offer.
As a result, San Jose, California-based Polycom will pay Mitel a termination fee of $60 million.
Siris Capital, which had previously made an offer of $12.25 per share for Polycom, said it would fund the deal through a combination of equity and debt.
Elliott disclosed a stake of 6.6 percent in Polycom in October and a 12 percent stake in Mitel in May.
Morgan Stanley was the financial adviser to Polycom, while Moelis, Evercore and Macquarie Capital were advisers to Siris Capital Group.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/emc-dell-talks-highlight-elliotts-clout-across-tech-sector-15063/">EMC-Dell talks highlight Elliott’s clout across tech sector</a>
<h4>Reuters</h4>

Siris Capital to buy Polycom, thwarting Elliott's Mitel merger

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Siris Capital to buy Polycom, thwarting Elliott's Mitel merger

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