Polycom Inc is to buy ViaVideo Communications Inc and has extended its partnership with 3M Corp. ViaVideo will be exchanged for 9.7 million new shares of Polycom common stock and the sale will go ahead once ViaVideo has completed a working production version of its next-generation group videoconferencing system. ViaVideo Communications was founded last September to develop videoconferencing systems for the group conferencing market. In acquiring ViaVideo, Polycom will become the first manufacturer to offer a full suite of teleconferencing products for group meeting applications, it said. The transaction has an approximate value of $37.6m, and is expected to be completed during the first quarter of 1998. Polycom’s agreement with 3M will see the companies jointly develop, market and distribute next-generation group videoconferencing products and marks 3M’s foray into the videoconferencing market. Polycom signed an agreement in April with 3M to jointly develop and market presentation technology.
