OREANDA-NEWS. Mitel (Nasdaq:MITL) (TSX:MNW) a global leader in real-time business, cloud and mobile communications, today announced the early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act) for its proposed acquisition of Polycom, announced on April 15, 2016.  Termination of the HSR Act waiting period satisfies one of the conditions to the closing of the pending transaction. The transaction, which is expected to close in Q3 2016, remains subject to other customary closing conditions, including receipt of shareholder and other regulatory approvals.

The combination of Mitel and Polycom will create a new industry leader with approximately 7,700 employees, leveraging Mitel's recognized leadership as a pioneer in global communications with Polycom's well-known premium brand and industry-leading portfolio in the voice and video collaboration market. Together, the combined companies will have the scale and a differentiated portfolio to enable expansion throughout the evolving enterprise communications market.

Global scale and strategic scope provide key customer benefits
The combined global company will offer customers an integrated technology experience supported by an impressive ecosystem of partners. Key market positions include:

  • #1 in business cloud communications (i)
  • #1 in IP/PBX extensions in Europe(ii)
  • #1 in conference phones (iii)
  • #1 in Open SIP sets (iv)
  • #2 in video conferencing (v)
  • #2 in installed audio (vi)
  • Installed customer base in more than 82% of Fortune 500 companies
  • Deep product integration with Microsoft solutions
  • Mobile deployments in 47 of the world's top 50 economies
  • Combined portfolio of more than 2,100 patents and more than 500 patents pending
  • Global presence across five continents with approximately 7,700 employees worldwide


Enhanced platform expected to deliver profitable growth with opportunities for synergies and significant debt deleveraging:
The combined company will have a significantly larger financial platform with the scope, scale and operating leverage needed to strategically expand in an actively evolving market. Financial highlights of the transaction include:

  • Diverse revenue base with pro forma 2015 sales of approximately $2.4 billion
  • Strong cash flow generation with pro forma 2015 EBITDA of approximately $350 million
  • Strengthened balance sheet with Mitel's pro forma 2015 net debt leverage reduced from 3.8x to 2.1x
  • Expected to be accretive to Mitel shareholders in 2017
  • Anticipated operating synergies of approximately $160 million by 2018, driven by supply chain optimization, facilities consolidation and economies of scale
 Sources:
  i.      Source: Synergy Research Group, March 2016
  ii.     Source: MZA Limited, March 2016
  iii.    Source: Frost & Sullivan, Global Audio Conferencing Endpoints, November 2015
  iv.    Source: Synergy Research Group, September 2015
  v.     Source: Q4 2015 UC Market Tracker - Telepresence Market Share Data Reports, February, 2016
  vi.    Source: Frost & Sullivan, Global Audio Conferencing Endpoints, November 2015
     

 

About Mitel

A global market leader in enterprise and mobile communications powering more than 2 billion business connections and 2 billion mobile subscribers every day, Mitel (Nasdaq:MITL) (TSX:MNW) helps businesses and mobile carriers connect, collaborate and provide innovative services to their customers. Our innovation and communications experts serve more than 60 million business users in more than 100 countries, and 130 mobile service providers including 15 of the top 20 mobile carriers in the world. That makes us unique, and the only company able to provide a bridge between enterprise and mobile customers.