Polycom Inc. is shedding its enterprise wireless voice solutions business, selling it to an affiliate of Sun Capital Partners Inc. for gross proceeds of approximately $110 million in cash (subject to certain adjustments set forth in the agreement). The sale should close in the third quarter.
Polycom’s enterprise wireless voice portfolio includes Wi-Fi and DECT handsets, related infrastructure and accessories, and generated revenues of approximately $94 million in calendar-year 2011.
The company’s board approved an increase in the company’s current share-repurchase authorization to include net proceeds of approximately $104 million from this transaction, contingent on the sale of the enterprise wireless voice solutions business and receipt of the net proceeds from the sale.
Notes President/CEO Andy Miller, “Polycom has evolved rapidly over the last 18 to 24 months, and taken actions designed to capture and lead the fast-growing video collaboration market through traditional and new delivery platforms including mobile, social and cloud. The sale of our wireless handset business is a further step toward focusing our product and technology portfolio on our core unified communications and video collaboration solutions, including extending the reach of the Polycom RealPresence Platform.”
In separate news, SeaChange International Inc. wrapped the sale of its broadcast server and storage business earlier today to the new independent company XOR Media.
According to SeaChange CEO Raghu Rau, “This sale is an important part of our strategy to transform SeaChange into a pure-play software company. Now that the transaction is complete, we can focus on our core software and services operations, including our next generation back office, video streamers, gateway software and advertising solutions.”
XOR Media CEO Zheng Gao agrees, adding, “XOR Media is a new business entity in name, but the same team and processes are here to ensure business continuity for our customers. The feedback we have been receiving on XOR Media is very encouraging, and we are excited to launch new opportunities for XOR Media’s open, cloud-capable, and media-optimized servers and storage.”