Mitel to be bought by Searchlight-led group for $2 bln: Reuters


© 2001-2018 Mitel Networks Corporation

Canadian telecommunications gear maker Mitel Networks Corp is selling itself to an investor group led by U.S. private equity firm Searchlight Capital Partners for about US$2 billion ($2.6 billion), the company said on Tuesday.

Ottawa-based Mitel’s shareholders will receive US$11.15 per share in cash, representing a 10 percent premium to the stock’s Monday closing. The company’s U.S.-listed shares were trading above the offer at US$11.64 before the opening bell.

Excluding Mitel’s net debt, the deal is worth about US$1.34 billion, according to Thomson Reuters‘ calculation.

The deal is expected to close in the second half of 2018.

Jefferies LLC is the financial adviser to Mitel, while Evercore is the lead financial advisor to Searchlight.

Update: In a statementTerry Matthews, Mitel’s co-founder and chairman, said the transaction will provide Mitel with “additional flexibility as a private company to pursue the company’s move-to-the-cloud strategy.”

Last September, Mitel acquired  ShoreTel Inc, a U.S. provider of business communication solutions, in a US$430 million deal.

(Reporting by John Benny in Bengaluru; Editing by Saumyadeb Chakrabarty)

(This story has been edited by Kirk Falconer, editor of PE HUB Canada)

Photo courtesy of Mitel Networks Corp

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