Tuesday, February 6, 2007

Polycom to Acquire SpectraLink for VoWiFi

Polycom will acquire SpectraLink for approximately $220 million ($11.75 per share).

SpectraLink designs, manufactures, and markets wireless telephone systems that integrate with an enterprise's existing telephone system. Its NetLink Wireless Telephones operate over Wi-Fi networks using a proprietary SpectraLink Voice Priority (SVP) mechanism to ensure voice quality. The company also offers the "Link Wireless Telephone System" (Link WTS), which uses proprietary Base Stations operating at 902-928 MHz. The product line also includes the SpectraLink Dect System which works with most enterprise communication systems through either an analog, T1 or IP interface.

"The SpectraLink acquisition extends Polycom's leading IP-based collaboration solution to the rapidly-growing mobility environment," stated Robert Hagerty, Chairman and CEO of Polycom.

For Q4 2006, SpectraLink reported revenue of $37.5 million, a decline of 7 percent compared with consolidated pro forma revenue for the prior-year fourth quarter. Gross margin for the fourth quarter was $20.2 million compared to $24.4 million pro forma results for the fourth quarter of 2005. GAAP net income for the fourth quarter of 2006 was $573 thousand or 3 cents per diluted share.