Mitel\u00ae\u00a0(Nasdaq:MITL) (TSX:MNW), a global leader in business communications, today announced the completion of its acquisition of ShoreTel. With this addition,\u00a0Mitel\u00a0has accelerated its move-to-the-cloud strategy, shifting into the #2 market share position for UCaaS (Unified Communications\u00a0as a Service) globally* as customers worldwide look for cloud and cloud-capable solutions to digitally transform their businesses.<\/p>\n\n
Seamless and simple cloud communications and collaboration solutions for customers<\/strong><\/p>\n\n \u201cDigital transformation is rapidly changing business models in every industry and every corner of the globe, opening the door to disruptive opportunities for companies to grow and compete. For businesses, moving to a cloud communications and collaboration system inside their own organizations is a natural first step on their digital transformation journey,\u201d said\u00a0Rich McBee, President and Chief Executive Officer of\u00a0Mitel. \u201cMitel and ShoreTel are now stronger together and even better equipped to help take our customers to the cloud, seamlessly and simply.\u201d<\/p>\n\n Stronger together with rich cloud culture and offering<\/strong><\/p>\n\n With the market moving further and faster to a cloud footing, McBee highlighted the success ShoreTel\u2019s management team and employees have had in transforming their business to meet changing customer needs and delivering an exceptional customer experience.<\/p>\n\n \u201cIn an apps economy and IoT world that depends on real-time communications, providing an agile, responsive and brilliantly simple customer experience becomes wildly important,\u201d said McBee. \u201cDon Joos and the entire ShoreTel team have institutionalized and mobilized that mantra, and put in place a cloud-first portfolio we are excited to take to customers globally, and a cloud-culture and organization we are thrilled to embrace and expand in Mitel.\u201d<\/p>\n\n Stronger together, with highly complementary cloud architectures,\u00a0Mitel\u00a0expects to share the vision for its integrated cloud and applications technologies early in 2018.<\/p>\n\n Seamless solutions to take all customers to the cloud with lifecycle support<\/strong><\/p>\n\n Consistent with Mitel\u2019s vision of providing customers with seamless communications and collaboration, a design philosophy of always providing customers a technology path to the future, and a corporate commitment to ensuring business continuity,\u00a0Mitel\u00a0and ShoreTel customers and partners can continue to count on the same cloud and on-site solutions they always have.\u00a0Mitel\u00a0will provide ongoing service and support for all products throughout their lifecycles. Customers and partners will be notified and updated in advance of all product announcements.<\/p>\n\n \u201cRegardless if you are a small business owner or the IT director for a Fortune 500 company, digitally transforming your organization to leverage business applications in the cloud, connect remote workers, and access collaboration tools that work in and out of the office, can be daunting. But it doesn\u2019t have to mean ripping out everything already in place or stranding investments already made,\u201d said\u00a0Elka Popova, Vice President and Senior Fellow, Connected Work and Digital Experience,\u00a0Frost and Sullivan. \u201cCompanies need a pragmatic blueprint to move to the cloud, and with ShoreTel solutions now part of Mitel\u2019s portfolio,\u00a0Mitel\u00a0is better-positioned to offer that kind of rational choice to more businesses so that customers can have their cake and eat it too.\u201d<\/p>\n\n Transaction Details<\/strong><\/p>\n\n In conjunction with the closing of the acquisition,\u00a0Mitel\u00a0today completed the financing of an incremental\u00a0US$300 million\u00a0term loan priced at LIBOR plus 3.75% with a LIBOR floor of 1.00% maturing in\u00a0September 2023. Proceeds of the incremental term loan, along with credit available under the existing revolving credit facility and cash on hand from the combined companies, were used to finance the acquisition of ShoreTel as well as fees and expenses related to the foregoing.<\/p>\n\n BMO Capital Markets\u00a0led the new term loan facility with\u00a0Citizens Bank, N.A.,\u00a0HSBC Bank Canada\u00a0and Canadian Imperial Bank of Commerce serving as Joint Lead Arrangers and Joint Bookrunners.\u00a0\u00a0Citizens Bank, N.A., led the amendment of the existing facilities and will act as administrative agent for both the existing and new facilities.\u00a0\u00a0EA Markets LLC\u00a0acted as\u00a0Mitel\u2019s\u00a0independent financial advisor in conjunction with the arrangement and structuring of the financing.<\/p>\n\n *Source:\u00a0Synergy Research, Q2 2017 UCaaS Market Share Report, August, 2017<\/p>\n\n Transaction Information for ShoreTel Stockholders<\/strong><\/p>\n\n Mitel\u2019s previously announced tender offer (\u201cOffer\u201d) to acquire all of the issued and outstanding shares of ShoreTel common stock expired at\u00a05:00 p.m.,\u00a0New York City\u00a0time, on\u00a0September 22, 2017. A total of 62,046,693 shares of ShoreTel common stock were validly tendered in the Offer, representing approximately 89.3% of the outstanding shares. All of the conditions to the closing of the Offer have been satisfied and\u00a0Mitel\u00a0has accepted for payment and paid for all of the tendered shares. Following acceptance for payment of the shares of ShoreTel common stock tendered in the Offer,\u00a0Mitel\u00a0completed the acquisition of ShoreTel through the merger of its subsidiary with and into ShoreTel, pursuant to which each share of ShoreTel common stock not tendered in the Offer (other than shares held by any stockholder that was entitled to and has properly demanded statutory appraisal of its shares) has been cancelled and converted into the right to receive the same\u00a0$7.50\u00a0per share in cash, without interest and subject to any required withholding taxes, as paid for shares tendered in the Offer. As a result of the merger, ShoreTel is now a wholly-owned subsidiary of\u00a0Mitel.<\/p>\n\n Forward Looking Statements<\/strong><\/p>\n\n Some of the statements in this press release are forward-looking statements (or forward-looking information) within the meaning of applicable\u00a0U.S.\u00a0and Canadian securities laws. These include statements using the words believe, target, outlook, may, will, should, could, estimate, continue, expect, intend, plan, predict, potential, project and anticipate, and similar statements which do not describe the present or provide information about the past. There is no guarantee that the expected events or expected results will actually occur. Such statements reflect the current views of management of\u00a0Mitel\u00a0and are subject to a number of risks and uncertainties. These statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, operational and other factors. Any changes in these assumptions or other factors could cause actual results to differ materially from current expectations. All forward-looking statements attributable to\u00a0Mitel, or persons acting on its behalf, are expressly qualified in their entirety by the cautionary statements set forth in this paragraph. Undue reliance should not be placed on such statements. In addition, material risks that could cause actual results to differ from forward-looking statements include: the inherent uncertainty associated with financial or other projections; the integration of\u00a0Mitel\u00a0and ShoreTel and the ability to recognize the anticipated benefits from the acquisition of ShoreTel (the \u201ctransaction\u201d); the anticipated size of the markets and continued demand for\u00a0Mitel\u00a0and ShoreTel products and services; the impact of competitive products and pricing and disruption to Mitel\u2019s and ShoreTel\u2019s respective businesses that could result from the announcement of the transaction; the ability to recognize the anticipated benefits from the divestment of Mitel\u2019s mobile division (\u201cMobile Division\u201d); risks associated with the non-cash consideration received by\u00a0Mitel\u00a0in connection with the divestment of the Mobile Division; the impact to Mitel\u2019s business that could result from the announcement of the divestment of the Mobile Division; Mitel\u2019s ability to achieve or sustain profitability in the future; fluctuations in quarterly and annual revenues and operating results; fluctuations in foreign exchange rates; current and ongoing global economic instability, political unrest and related sanctions; intense competition; reliance on channel partners for a significant component of sales; dependence upon a small number of outside contract manufacturers to manufacture products; and, Mitel\u2019s ability to successfully implement and achieve its business strategies, including its growth of the company through acquisitions and the integration of recently acquired businesses and realization of synergies, including the acquisition of ShoreTel. Additional risks are described under the heading \u201cRisk Factors\u201d in Mitel\u2019s Annual Report on Form 10-K for the year ended\u00a0December 31, 2016\u00a0filed with the\u00a0SEC\u00a0and Canadian securities regulatory authorities on\u00a0March 1, 2017, in Mitel\u2019s Quarterly Report on Form 10-Q for the quarter ended\u00a0June 30, 2017\u00a0filed with the\u00a0SEC\u00a0and Canadian securities regulatory authorities onJuly 28, 2017, and in ShoreTel\u2019s Annual Report on Form 10-K for the year ended\u00a0June 30, 2017\u00a0filed with the\u00a0SEC\u00a0on\u00a0September 8, 2017. Forward-looking statements speak only as of the date they are made. Except as required by law,\u00a0Mitel\u00a0has no intention or obligation to update or to publicly announce the results of any revisions to any of the forward-looking statements to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements.<\/p>\n","protected":false},"excerpt":{"rendered":" Mitel\u00ae\u00a0(Nasdaq:MITL) (TSX:MNW), a global leader in business communications, today announced the completion of its acquisition of ShoreTel. With this addition,\u00a0Mitel\u00a0has accelerated its move-to-the-cloud strategy, shifting into the #2 market share position for UCaaS (Unified Communications\u00a0as a Service) globally* as customers worldwide look for cloud and cloud-capable solutions to digitally transform their businesses. Seamless and simple […]<\/p>\n","protected":false},"author":1,"featured_media":2023,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[28],"tags":[],"class_list":["post-2073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology-pt-pt"],"yoast_head":"\n