Polycom spiked nearly 13 percent, and Mitel popped nearly 20 percent on Friday. Private equity firm Siris Capital overshadowed Mitel's $1.96 billion offer with a roughly $2 billion, or $12.50 per share, cash bid.
"We are very excited for the opportunity to partner with Polycom and its leadership team, as the Company fits well with Siris' investment focus on mission-critical telecommunications businesses," said Dan Moloney, executive partner at Siris, in a statement Friday.
Siris added that it wants to use Polycom's audio and video collaboration to move into a cloud-based environment.
"While I am disappointed that this particular transaction will not move forward, I am confident in Mitel's future as an industry leader and as a market consolidator," said Rich McBee, president and CEO of Mitel in a Friday statement. He indicated that the company would not adjust the prior agreement.