Last week, Polycom, a Pleasanton, Calif.-based manufacturer of video and audio conferencing systems, said it agreed to buy communications equipment company SpectraLink for $11.75 per share, or about $220 million cash. The purchase price represented a 33% premium to the stock’s closing price last Wednesday, when the deal was announced. It was exactly what shareholders of SpectraLink needed.

But is it a good deal? Earlier this year, shares of SpectraLink (nasdaq: SLNK - news - people ) were on a tear. The company, which provides phones that work off a wireless local area network (WLAN)–a Wi-Fi network designed for the workplace–had recently acquired KIRK Telecom, a privately held Danish provider of wireless communications products. SpectraLink paid $62 million ($30 million in cash and $32 million in debt). In addition to selling its phones to big retailers like Home Depot (nyse: HD - news - people ), where salespeople can always be reachable no matter where they are located, the belief was that KIRK, which develops and markets wireless voice and data systems for corporate customers throughout the world, would be a big boost for SpectraLink, broadening its market share to England and Germany, among other countries. It also seemed that KIRK, which provided wireless voice networks based on the European system, DECT, would find growth in the U.S., since that particular technology is less expensive to deploy for small- and medium-sized businesses.

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