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

Published 2016-04-15, 06:07 a/m
© Reuters.  BRIEF-Mitel to acquire Polycom in deal valued at about $1.96 bln
MITL
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April 15 (Reuters) - Mitel Networks Corp MNW.TO :
* 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: ID:nGNXMQLPZa
Further company coverage: MNW.TO

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