Polycom closes deal to sell enterprise wireless unit for $110 million
Polycom (Nasdaq: PLCM) has finalized the sale of its enterprise wireless communications business, which operates under the SpectraLink and KIRK telecom brands, to private investment firm Sun Capital Partners for $110 million.
The business, which generates close to $100 million in annual revenues, provides on-premise mobile enterprise communications products--such as handsets, infrastructure, accessories and services--using Wi-Fi, DECT and proprietary wireless networks. It focuses on the healthcare, hospitality, retail, warehousing and manufacturing sectors.
Sun Capital said it plans to set up the business as a standalone company to take advantage of projected growth in the enterprise wireless communications market. The headquarters of the new company will be in Colorado and its European operations will be based in Horsens, Denmark.
The sale is part of Polycom's effort to focus on its core unified communications and videoconferencing business. Polycom holds a strong second place in the videoconferencing market, with a 25 percent market share, behind market leader Cisco (Nasdaq: CSCO), according to the latest IDC data.
As part of its effort to focus on its core UC and videoconferencing business, Polycom announced this week enhancements to its video content management products, including a cloud-based version of its RealPresence Media Manager and RSS 4000 v8.5, which enables enterprises to record, stream, manage and view live and on-demand video content.
Polycom perhaps picked a poor time to focus on its videoconferencing business because market revenues are declining. Overall, revenue in the enterprise videoconferencing and telepresence market declined 4.8 percent in the third quarter compared to the same quarter in 2011, according to IDC. Multi-codec immersive telepresence, a segment in which both Cisco and Polycom have a significant presence, continues to decline, with a 35.8 percent year-over-year drop.
- see the Sun Capital release