Polycom Inc., a provider of communications technology to businesses, said Wednesday it has bought Hewlett-Packard Co.'s video conferencing business for $89 million.
The deal comes less than a month after Microsoft Corp. agreed to buy Skype, a provider of voice and video calls, in a $8.5 billion deal. The world's largest software maker is betting that Skype's offerings will allow it to offer businesses money-saving conferencing tools — and sell more digital advertising in the process.
Polycom said the acquisition will help extend its "leadership in the unified communications and collaboration market."
The deal is expected to close in the third quarter. Polycom expects it to add slightly to its earnings upon closing.
Shares of Polycom rose 42 cents to $57.83 in afternoon trading.