Mitel has agreed to be acquired by Searchlight Capital Partners in an all-cash transaction worth about USD 2.0 billion, including Mitel’s net debt. Mitel’s shareholders will receive USD 11.15 per share in cash, a 24 percent premium over the 90-day weighted average price. When the transaction completes, Mitel will become a privately held company, a move expected to provide it with additional flexibility to accelerate its move-to-the-cloud strategy.
Mitel directors said they will recommend the acquisition to its shareholders. The transaction, expected to close in the second half of the year, is not subject to any financing condition. The terms of the deal do include a 45-day "go-shop" period, during which Mitel can consider other bids.
Mitel said it will issue more details with its first quarter results, scheduled to release on 3 May.
The takeover is the latest in a series of consolidation moves in the UCaaS sector, which has shown strong growth as more businesses move their communications to the cloud. Polycom was acquired by the private investment group Siris in 2016 for USD 2 billion, and then sold on to Plantronics last month. Mitel earlier tired to buy Polycom, but missed out, only to buy Shoretel last year for USD 530 million. RingCentral has reportedly also attracted takeover interest, and Cisco took over Broadsoft early in 2018.
