5 Key Points For Partners In Plantronics' $2B Acquisition Of Polycom

Unified UCC Powerhouse

Plantronics has completed its $2 billion acquisition of unified communications and collaboration provider Polycom, setting the company up to offer one of the broadest portfolios in the UCC industry.

Plantronics expects the acquisition to begin contributing to its bottom line right away, and said it can realize about $75 million in cost savings on an annual run-rate basis within the first 12 months. Still, the company says it won't change what works about either unit today, namely their channel programs.

The channel programs of communications equipment specialist Plantronics and UCC provider Polycom will remain separate, at least for the time being. The company considers the units' broad, global presence in the channel and common distribution relationships a key asset. Also, instead of going head-to-head with market leaders Cisco and Microsoft, Plantronics says the deal gives the company the market presence it needs to encourage better interoperability across the entire UC and collaboration market.

The stock-and-cash deal makes Triangle Private Holdings II LLC, Polycom's sole shareholder, a 16 percent owner of Plantronics.

Here are a few of the most important aspects of the acquisition for partners to consider.

Channel Programs Unchanged

Existing Plantronics and Polycom channel programs and operations will remain as they are, at least for the time being, a company spokesman told CRN. Partners will continue to place orders using the current Plantronics and Polycom ordering processes. The two companies had common global distribution relationships prior to the merger, which may also help partners make a smooth transition. Nick Tidd, vice president of Polycom's global partner organization, remains in that position.

Market Moves

A combined Plantronics and Polycom moves Plantronics out of the peripherals business and squarely into the unified communications systems market, giving the company the gravitas and scale it needs to work with UC competitors to increase interoperability, reduce complexity, and in turn, boost customer retention. Because the two UC providers have worked together in the past -- Plantronics on the communications hardware side and Polycom on the UC service side -- many solution providers partner with both companies today.

Collaborative Effort

Plantronics hardware has been the "non-competitive addition" to many UC sales from a variety of vendors, including Polycom and Cisco because the technology will work with any communications or video service. Instead of using the acquisition to create a more formidable UC player that can better go head-to-head with market leaders Cisco and Microsoft, Plantronics says the deal gives the company the market presence it needs to encourage better interoperability across the entire UC and collaboration market.

Ever-Present Experience

With the Polycom acquisition, Plantronics' aim is to bring voice, video, content and cloud solutions to customers no matter where they are. The combined company is particularly well-suited for modern workspaces and flexible work arrangements, as well as the rapidly expanding number of platforms and devices being used by businesses and individuals. With Polycom under its roof, Plantronics "can offer a premium experience regardless of the UCC solution selected by the customer."

Flexibility Is Key

Plantronics says the Polycom acquisition puts the combined company in position to offer audio and video solutions that are the easiest to use and manage in the industry. Plantronics/Polycom solutions work across on-premises, cloud and hybrid platforms, given customers the ability to choose how and when they want to deploy or migrate. That, combined with the global reach the combined company's channel provides, means Plantronics has a huge opportunity to seize market share at a critical time, Ira Weinstein, founder of Recon Research, said in a statement.