MILPITAS, Calif., Dec 6 (Reuters) - Communications product
maker Polycom Inc. <PLCM.O> said Wednesday it planned to buy
Israel's Accord Networks Ltd. <ACCD.O>, which makes
video-conferencing technology, for $339 million in stock.
    Under the terms of the agreement, California-based Polycom
will exchange 6.26 million shares of its common stock for all
outstanding shares of Accord, the company said.
    It added 1.51 million shares would be used in exchange for
the outstanding options and warrants for Accord.
    The shares will be exchanged based on a fixed ratio of
0.3065 shares of Polycom for each share of Accord, Polycom said.
That values each Accord share at $14.14, or more than twice its
closing price of $6-7/16 on the Nasdaq Tuesday.
    The value of the transaction, based on Polycom's closing
price yesterday of $46-1/8, is about $339 million, the company
noted.
    The deal is expected to be completed by the end of the first
quarter 2001, the firm said.
    Polycom said it expects the acquisition to add "slightly" to
earnings in 2001, excluding one-off acquisition related costs.
    "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," Bob Hagerty, Polycom's
president and chief executive, said in a statement.
    Polycom shares finished up $7-9/32 at $46-1/8 on the Nasdaq
Tuesday. The stock has a 52-week high of $72-1/4 and a 52-week
low of $23-1/2.
    Shares of Accord, meanwhile, closed up $1/32 at $6-7/16,
also on the Nasdaq Tuesday. Accord shares have a 52-week high of
$13-1/4 and a 52-week low of $4-3/4.
    ((New York Newsroom (212) 859-1700))