ACCD being bought by PLCM -- now, to figure out what it'll MEAN in terms of price-impact, both immediately and after the dust settles.
If I read this right -- and I'm NOT sure I do, so don't quote me on it -- it looks like the deal would value ACCD at nearly $15/share based on PLCM's Tuesday price in the high 40's and an exchange-ratio of .3 PLCM shares per each ACCD share. But I'd also expect PLCM's price to drop at least in the short term, since it's the acquiring company (that's usually been the pattern lately), so all that could change.
And if anyone has a BETTER calculation on those numbers, please correct me!!
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Wednesday December 6, 5:00 am Eastern Time
Press Release
SOURCE: Polycom, Inc.
Polycom to Acquire Accord Networks Ltd. for Approximately $339 Million In Stock; Agreement Adds Next Generation Infrastructure to Polycom's Converged Network Solutions
MILPITAS, Calif. and ATLANTA, Dec. 6 /PRNewswire/ -- Polycom®, Inc. (Nasdaq: PLCM - news), a worldwide leader in broadband communications solutions, and Accord Networks Ltd. (Nasdaq: ACCD - news), today announced an agreement under which Polycom will acquire Accord, a leading provider of next-generation, rich-media network products that enable Internet Protocol (IP) and other network voice and video communications in both the customer premise and service provider markets.
Under the terms of the agreement, 6.26 million shares of Polycom common stock will be exchanged for all outstanding shares of Accord and 1.51 million shares will be used in exchange for the outstanding options and warrants for Accord. These shares will be exchanged based on a fixed ratio of 0.3065 shares of Polycom for each share of Accord. The value of the transaction, based on yesterday's Polycom closing price, is approximately $339 million. This acquisition is anticipated to be completed by the end of the first quarter 2001 and is subject to approval by Accord's shareholders and compliance with applicable regulatory requirements. In addition, this transaction is intended to be accounted for as a pooling of interests and is intended to qualify as a tax-free reorganization. Excluding one-time acquisition related expenses, Polycom expects the acquisition to be slightly accretive in 2001.
``The integration of Accord's next generation network infrastructure products with Polycom's network access and voice and video products positions Polycom as a leading end-to-end voice and video solutions company,'' said Bob Hagerty, president and CEO of Polycom. ``Accord's core competency in serving the voice and video network infrastructure with its market leading V2IPERA family of multi-port gateways significantly augments Polycom's offering, not only at the customer premise, but also through Accord's partnerships with the leading communications service providers around the world. In addition, Accord's unparalleled development team will provide a strong foundation as Polycom builds a platform of seamless, broadband voice and video communications for enterprises and service providers of all sizes.''
Hagerty continued, ``For the first time, enterprises are demanding IP-based voice and video communications broadly and at a rapidly growing rate. With Accord, Polycom will be well positioned to leverage its products and technology to service all of the voice and video communications needs of enterprises and service providers.''
``Joining forces with Polycom leverages Accord's technology and product platform through Polycom's extensive strategic partnerships and global channel base,'' said Jules DeVigne, CEO of Accord Networks. ``We believe that the strategic synergies between Accord and Polycom will create a company poised to take advantage of the growing broadband communications market. We share Polycom's vision of the ubiquitous deployment of IP-based voice and video communications on every desktop and in every meeting room around the globe.''
Polycom and Accord will host a conference call to discuss this acquisition today at 8:30 a.m. ET, 5:30 a.m. PT. The two numbers that may be used to access the call are 415-247-8577 and 212-346-0147. Also, the call will be available on Polycom's and Accord's web sites for one week, beginning at 1 p.m. PT today.
About Polycom
Polycom develops, manufactures and markets a full range of premium-quality network access devices and broadband appliances. Polycom's integrated communications solutions enable business and professional users to immediately realize the benefits of voice, video and data over rapidly growing broadband networks. Additional information about Polycom is available at www.polycom.com.
About Accord
Accord Networks Ltd. is the leading manufacturer of video and voice network products for the converged network. Accord develops and markets the V2IPERA product family-a line of network infrastructure servers that empower rich-media communications over IP, ATM, and circuit-switched network environments. Additional information about Accord Networks may be found at www.accordnetworks.com. |
