Mitel on Monday said its $540 million proposal to buy ShoreTel was rejected by the latter’s board.
The proposed cash deal was for acquiring ShoreTel for $8.10 per share in cash, representing equity value of approximately $540 million. The offer represented a 24 percent premium to ShoreTel’s closing stock price on October 17, 2014, and a 30 percent premium to ShoreTel’s enterprise value.
Mitel said it is seeing a compelling opportunity to bring together two market innovators with strong and complementary market footprints, particularly in the U.S. where ShoreTel does more than 90 percent of its business.
Richard McBee, president and CEO of Mitel, said: “We are disappointed that the ShoreTel Board has rejected our proposal and refused to engage with us. We remain open to constructive and progressive discussions and for that reason I have advised the ShoreTel Board that our proposal will remain open until 5pm EST on November 20, 2014.”
Mitel said it’s powering more than 2 billion connections every day. That includes more than 33 million cloud connections daily. Its business communications experts serve more than 60 million users with over 2500 channel partners in more than 100 countries.
Recently, Mitel completed the acquisition of Aastra Technologies.