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When calling Avaya's third quarter 2019 results last week, Avaya CEO Jim Chirico said the company was hoping to finalize its next strategic plan "in the next 30 days ". A week later, a new announcement revealed that Mitel was an interested buyer. . "
Speculation about Mitel's interests was first raised four months ago, in a Wall Street Journal report that Avaya and Mitel were discussing a merger. At the time, which followed Chirico's earlier recognition that Avaya had hired JP Morgan to evaluate options to maximize value for shareholders, he proposed the potential transaction – a transaction on shares – valued at around $ 2 billion, or about $ 20 to $ 22 per share. .
Bloomberg reported yesterday, citing information gathered from "knowledgeable people," that Mitel had submitted an offer on Avaya that "it estimates that the combined transaction would cost more than $ 20 per share." The purchase, if it became a reality, could create a single entity of more than $ 5 billion, including debt, reported Bloomberg.
According to Bloomberg sources, the agreement reached by Mitel would put a third of the capital in the hands of its investors. The merged company would be listed on the stock exchange, said a source at Bloomberg, and the private equity owner of Mitel, Searchlight Capital "expects synergies of at least $ 250 million a year through the deal . "
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