Wed, Apr. 29, 1:11 PM
- Mitel's (NASDAQ:MITL) acquisition of carrier VoLTE software provider Mavenir (MVNR) is on the books. As previously announced, Mavenir investors will receive either a mixture of cash/stock worth $17.55/share or 1.83 Mitel shares for each share they own.
- Along with the announcement, Mitel states it has closed on a $710M credit facility that features a $660M term loan sporting an interest rate of LIBOR + 4%. Mitel has used the facility's proceeds to "finance the acquisition of Mavenir, repay the approximately US$280.2 million outstanding under Mitel's existing credit facilities and to repay the approximately US$27.3 million outstanding under Mavenir's existing credit facilities."
- Mitel has sold off following the announcement; its Q1 report arrives on May 7. Mavenir issued a Q1 warning on April 10.
Mon, Mar. 2, 6:10 AM
- Mitel (NASDAQ:MITL) will acquire Mavenir (NYSE:MVNR) for cash and stock worth $17.94/share based on Friday's close - a 23% premium.
- For Mitel, which primarily serves the enterprise with UC (unified communications), the deal expands its footprint to more than 130 service providers and mobile operators, including 15 of the top 20 mobile operators worldwide. It says acquiring the VoLTE and RCS pioneer will expand its total addressable market by approximately $14B by 2018. (LightReading)
- A webcast, at 8:30 AM ET, can be heard here.
- Here are the presentation slides
- Press release
- Note: On Jan. 13, SA author Ben Axler recommended Mavenir as his top long idea for 2015 and beyond.
Nov. 17, 2014, 10:31 AM
- Mitel (MITL +0.5%) has withdrawn its $540M ($8.10/share) offer to acquire ShoreTel (SHOR -8.6%), first announced on Oct. 20.
- Mitel says its decision stems from "the repeated refusal of ShoreTel's Board of Directors to engage in discussions of any kind regarding a potential transaction." ShoreTel has fallen to $7.50 in response.
Oct. 20, 2014, 10:08 AM
- Following a rejection from ShoreTel's (SHOR +16.1%) board, Mitel (MITL -1.2%) has gone public with an offer to buy the fellow VoIP/unified communications hardware and software provider for $540M, or $8.10/share, in cash. The price represents a 24% premium to ShoreTel's Friday close.
- Mitel says its proposal will remain open until 5PM ET on Nov. 20.
- ShoreTel currently trades at $7.50; its 52-week high is $9.81. With Mitel's market cap only at $936M, there could be some doubts about its ability to pull off a $510M all-cash acquisition. The company had $134.2M in cash at the end of June, and $342M in debt.
Nov. 11, 2013, 8:41 AM
- Mitel Networks (MITL) will acquire Aastra Technologies (AATSF) for $6.52 in cash and 3.6 MITL shares per share of AATSF. The price represents a 21% premium to the 30-day Toronto VWAP of AATSF and a 13% premium as of Friday's close. The total consideration to be paid is $374M (C$392M).
- The move creates a combined company with $1.1B in revenue, a $100M cloud business, 60M end users, and market leadership in Western Europe.
- Mitel expects to achieve $45M in synergies within 2 years driven by supply change optimization, facilities consolidation, and economies of scale. It also expects the acquisition to reduce its debt leverage ratio.
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