Mitel Networks Corp (NASDAQ:MITL) Enters into Definitive Arrangement Agreement to be Acquired by Affiliates of Searchlight Capital Partners for $2.0 Billion

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Mitel Networks Corp (NASDAQ:MITL) has announced that it has entered into a definitive arrangement agreement to be purchased by an investor group which will be led by affiliates of Searchlight Capital Partners, L.P. The deal will be an all-cash transaction and a total of $2.0 billion will be paid.

The deal will be sealed after meeting all the required conditions. Following the purchase, shareholder will get $11.15 per common share in cash. This will be far beyond Mitel’s 52-week and last three-year-high price and is a representation of a premium of around 24% to the three months weighted average price of Mitel common shares up to April 23, 2018.

As part of the deal, Mitel will shit and become a privately held entity, a move that is geared at offering more flexibility and speed up its move-to-the-cloud strategy.

The transaction was unanimously approved the company’s Board of Directors saying it was in best interest of the company and would add more value to shareholders.

Mitel Co-founder and Chairman Terry Matthews said that the company has succeeded for the last 45 years because it has been persistent in innovation plus a lot of focus on delivering value to its shareholders. He added that the Board had determined that upon completion, the transaction will deliver instant cash value to the shareholders. Matthews added that the deal affirms the company’s immense values and leadership in the market.

Searchlight is an investment company and has its investments in Europe and North America. It seeks partnerships with global leading companies and businesses which have strategic support and capital that can add value.


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While commenting on the deal, Mitel CEO, Rich McBee said that the transaction is a good opportunity in the company’s ongoing transformation agenda which has enables it to develop and become an industry leader in one of the world’s largest market. He added that as a private company and with capital and strategic support of the Searchlight funds, the company will enjoy a lot of flexibility to be able to accelerate its development strategy, manage transition in the market and drive a lot of success for its partners, customers and employees.

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