Although the recent acquisition of Accordent (news, site) by Polycom is not throwing up the kinds of figures we have become used to in deals such as Oracle and Sun, Xerox and ACS or IBM and OpenLogix, the price tag of US$ 50 million still gets Polycom some potentially serious firepower.
It's possible that the reason this deal hasn’t created the same kind of stir that other deals have is because it is in the still relatively new space of video content management, which, if it isn’t producing the figures the enterprise CMS market is generating, is still expected to grow at a compound rate of 32% annually to 2014, when it will be worth US$ 1.2 billion.
Polycom is a company that specializes in unified communications and, with the acquisition of Accordent, is hoping to take the top spot in the video content management market, which, as yet, has still to produce a clear leader.
The cash deal of US$ 50 million will not affect Polycom's earnings for this year, the company says, and is expected to provide positive growth for the company by as early as next year.
Once the deal is finalized, it is expected that the principal products from both companies will be integrated, notably Polycom’s open standards UC Intelligent Core with Accordent’s equally open video content management system.
Combined, the two will provide a video management tool that has the potential to fill the top spot that is still vacant in the market.
Accordent offers video capture solutions for all major video use cases, be they scalable webcasts, rich media for meeting rooms or media webcasting.
And then there is the Microsoft Lync part of the equation. As a strategic partner with Microsoft, Accordent will be able to strengthen Polycom’s already deep integration with Microsoft. There is also the fact that – without overstating the Office 365 case too much – that Lync is one of the elements that will be included in the soon-to-be-released Office 365.
We believe Accordent has the most elegant video content management solution on the market, and by leveraging customer, channel, partner and product synergies with Polycom, this transaction positions Polycom at the forefront of end-to-end video and content management…" Sudhakar Ramakrishna, Polycom Chief Development Officer said.
Accordent also brings support for SharePoint, with even deeper Microsoft integrations promised, although where those integrations will occur has yet to be outlined.
And then there are the purely commercial advantages of the deal. Although a relatively small company, Accordent’s revenues grew to US$ 9 million in 2010 and built a customer base of 1,200 clients in enterprises in both the public and private sectors.
With the acquisition, Polycom picks up those customers -- 80% of whom are not currently Polycom customers. In addition, Polycom should also be able to generate new clients, as Accordent’s business portfolio outside of the US is only 10% of its entire portfolio, while Polycom’s is about 40%.
Founded in 1999, Polycom has been building itself up over the past two years by bringing in new executive talent, expanding its channel program and extending its partnerships. Expect a lot more from this acquisition in the future.