April 15, 2016 / 10:12 AM / a year ago

BRIEF-Mitel to acquire Polycom in deal valued at about $1.96 bln

2 Min Read

April 15 (Reuters) - Mitel Networks Corp :

* Mitel announces definitive agreement to acquire Polycom

* Says transaction valued at approximately $1.96 billion

* Transaction expected to be accretive to Mitel in 2017

* Mitel Networks Corp says Polycom stockholders will be entitled to $3.12 in cash and 1.31 Mitel common shares for each share of Polycom common stock

* Polycom brand to be retained

* Richard Mcbee, Mitel's chief executive officer will lead combined organization.

* Steve Spooner, Mitel's chief financial officer, will also continue in that role

* Says expected that Polycom directors will assume two seats on Mitel board

* On closing of proposed transaction, it is expected that Polycom directors will assume two seats on Mitel board.

* Combined company will be headquartered in Ottawa, Canada

* Mitel Networks says Polycom to hold approximately 60% and current Mitel shareholders to hold approximately 40% of outstanding Mitel common shares

* Combined company will operate under Mitel name

* Intends to finance cash portion of consideration for acquisition, refinancing of existing credit facilities and those of Polycom

* Mitel Networks Corp sees q1 revenue and adjusted EBITDA margin will be within company's prior guidance range

* Sees Q1 Non-Gaap revenue will be in range of $270 million to $280 million and adjusted EBITDA margin will be in range of 7.5% to 9.5%

* Says has received financing commitments from BofA Merrill lynch of approximately $1.1 billion in aggregate

* Says anticipates operating synergies of approximately $160 million by 2018

* Q1 revenue view $283.8 million -- Thomson Reuters I/B/E/S Source text for Eikon: Further company coverage:

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below