Mavenir to be bought by Canadian communications company for $560M
March 2, 2015
By Danielle Abril
Staff Writer - Dallas Business Journal
Richardson-based Mavenir Systems has agreed to be bought by Canadian communications company Mitel in a deal worth about $560 million, the companies announced at the Mobile World Congress in Spain.
The transaction is expected to be completed in the second quarter.
Mavenir (NYSE: MVNR) will become the mobile business division of Mitel, operating under its own brand name. Pardeep Kohli, president and CEO, will remain in charge of Mavenir and report to Mitel CEO Rich McBee.
The acquisition helps Mitel capitalize on the growth of Voice over LTE as carriers transition to all-IP 4G mobile, adds a new high-growth business unit and expands the company's footprint to include more than 130 service providers and mobile operators, covering 2 billion subscribers.
Mavenir stockholders will be able to receive either all-cash or all-stock consideration for each share of common stock with a value of $11.08 plus 0.675 of a Mitel common share, or $17.94 based on the closing price of a Mitel common share on Feb. 27.
Mavenir went public Nov. 7, 2013, trading on the New York Stock Exchange with the ticker symbol MVNR. The mobile solutions company raised $54.5 million during its initial public offering.
To read this story on the Dallas Business Journal website, please click here