Mitel Networks to be sold to Searchlight Capital in $2bn deal

By zaymalz malz

Canadian telecommunications solutions provider Mitel Networks has announced that it is set to be acquired by London-based private equity firm Searchlight Capital in a deal valued at $2bn (CAD$2.6bn).

At CAD $14.29 a share, the deal represents a premium of approximately 24% compared to the firm’s unaffected share price when combined with Mitel’s net debt, resulting in the company’s stock jumping 10% off the back of the announcement.

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“Our Board determined that this transaction, upon closing, will deliver immediate, significant and certain cash value to our shareholders,” said Terry Matthews, Mitel Co-Founder and Chairman. “It also affirms the tremendous value and market leadership of Mitel.”

The acquisition will allow Mitel to accelerate its “move-to-the-cloud” strategy off the back of becoming a privatized organization, coming less than a year after the firm acquire ShoreTel to strengthen its position in the software-as-a-service (SaaS) market.

“This transaction is an exciting next step in our multi-year transformation that has enabled Mitel to emerge as an industry leader in the largest markets in the world,” said Mitel CEO, Rich McBee.

“As a private company, and with the strategic and capital support of the Searchlight funds, we will have greater flexibility to manage the transition in our market, accelerate our strategy, and drive the next phase of success for our customers, partners, and employees.”

The transaction is expected to close sometime in H2 2018.


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