Gores Private Equity bid for Polycom

Updated: January 07, 2011

The Gores Group has recently approached Polycom regarding a possible merger of Polycom with Siemens. Polycom, which with Tandberg owns about three-quarters of the room videoconferencing market, would be a valuable acquisition for Gores, which owns 51% of Siemens Enterprise Communications. The merger would offer Siemens access to major accounts that use Polycom for video and phones. Polycom is also an attractive acquisition because it has a history of working well with all the major vendors.

However, according to Eric Knapf, writing for No Jitter weblog, "that's a double-edged sword...customers will clearly be nervous about relationships if both Tandberg and Polycom are owned by two of the competing core vendors."

Siemens, although a powerful communications vendor in its own right, has so far ranked well behind other North American enterprises like Avaya and Cisco, and Gores seems determined to develop Siemens through acquisitions. It is widely accepted that Gores has been pursuing a merger with Polycom ever since Cisco announced a merger with Tandberg. Gores approached Polycom last October about a possible merger, but was turned down. Krapf suggests that Gores's latest bid was motivated by another, unnamed, private equity firm's bid for Polycom.

Featured Research
  • Unnecessary VoIP Features that Drive up Costs

    These days, few communication tools rival VoIP systems in the ways of workplace efficiency. From improved voicemail to email integration, VoIP products make businesses run smoothly. more

  • Why Your Educational Institution Needs to Implement VoIP

    VoIP makes a lot of sense for educational institutions—and it’s not just because of the substantial cost savings. Other benefits include increased efficiency and integration options. Emergency responsiveness can even be improved. more

  • Is Your Phone System Meeting the Needs of Your Workforce?

    When was the last time you evaluated the performance of your current business phone system? For most people, the answer is too long ago. Phone systems are one of the most overlooked tools in business, even though they’re also one of the most important in terms of employee productivity. more

  • Why are Companies Still Using PBX?

    For years, all kinds of businesses depended on Private Branch Exchange (PBX) phone systems to help facilitate direct, line-to-line communication. Over the course of the past decade, however, Voice over Internet Protocol (VoIP) technology quickly became the go-to resource for brands. more

  • Top 15 Reasons You Should Upgrade to VoIP

    While more businesses make the switch to VoIP every single day, there are also many that choose to stay with the system they are used to.The rationale is almost always the same. You don’t want to shake things up when what you are already using is working. more