It appears the rumors of a Mitel acquisition of Polycom were true as the two companies today announced that they have entered a definitive merger agreement that will undoubtedly spark UC innovation. Under the agreement, Mitel will acquire all outstanding shares of Polycom common stock, a cash and stock transaction valued just shy of $2 billion.

As part of the transaction, Polycom stockholders will be entitled to $3.12 in cash and 1.31 Mitel common shares for each share of Polycom common stock, or $13.68 based on the closing price of a Mitel common share as of April 13, 2016. This transaction represents a 22 percent premium to Polycom shareholders based on Mitel and Polycom’s “unaffected” share prices as of April 5. It is expected to close sometime in the third quarter of this year, subject to shareholder and regulatory approvals, as usual.

This acquisition comes at a time of change for the communications and collaboration industry, leading to a breaking down of barriers between once discrete markets and technologies. Mitel has led the charge in this change through a series of strategic acquisitions, which has also allowed the company to help its customers operate more efficiently and cost effectively.

However, the acquisition of Polycom is Mitel’s biggest move yet in this regard as it will create a new industry leader on the back of Mitel’s recognized position as a pioneer in global communications and Polycom’s premium brand and respect portfolio of conferencing and video collaboration solutions.

The combined company will be headquartered in Ottawa, Canada, and will operate under the Mitel name, but will still maintain Polycom’s global brand. Mitel CEO Richard McBee will lead the combined company, while Mitel CFO Steve Spooner will also continue in his current role. Once the transaction closes, two Polycom directors will assume two seats on the Mitel board.

“Polycom is one of the most respected brands in the world and is synonymous with the high quality and innovative conference and video capabilities that are now the norm of everyday collaboration,” said McBee. “Together with industry-leading voice communications from Mitel, the combined company will have the talent and technology needed to truly deliver integrated solutions to businesses and service providers across enterprise, mobile and cloud environments.”