Page 22 - Telecom Reseller April-May 2016

22 Telecom Reseller
April/May 2016
Mitel announces
#1 in Open SIP sets (iv)
entered into voting agreements with Polycom
#2 in video conferencing (v)
to vote their respective Mitel common shares
#2 in installed audio (vi)
in favor of the transaction. Polycom’s directors
de nitive agreement Installed customer base in more than 82% of
and executive o cers have entered into voting
Fortune 500 companies
agreements with Mitel to vote their respective
Deep product integration with Microso
shares of Polycom common stock in favor of the
solutions
transaction. In addition, Elliott Management
Mobile deployments in 47 of the world’s top 50
has entered into voting agreements with each
to acquire Polycom
economies
of Mitel and Polycom to vote its Mitel common
Combined portfolio of more than 2,100
shares and its shares of Polycom common stock
patents and more than 500 patents pending in favor of the transaction.
Global presence across ve continents with
e transaction is expected to close in the
approximately 7,700 employees worldwide third quarter of this year, subject to stockholder
Enhanced platform expected to deliver approval by Polycom and Mitel, receipt of
Mitel and Polycom, announced that they have Financial O cer, will also continue in that role. pro table growth with opportunities for
regulatory approval in certain jurisdictions and
entered into a de nitive merger agreement in On the closing of the proposed transaction, it
synergies and signi cant debt deleveraging other customary closing conditions. Following
which Mitel will acquire all of the outstanding is expected that Polycom directors will assume e combined company will have a
the closing of the transaction, former Polycom
shares of Polycom common stock in a cash
two seats on the Mitel board. Once merged, the signi cantly larger nancial platform with the shareholders are expected to hold approximately
and stock transaction valued at approximately combined company will have a global workforce scope, scale and operating leverage needed to 60% and current Mitel shareholders are
$1.96 billion. Under the terms of the agreement, of approximately 7,700 employees.
strategically expand in an actively evolving expected to hold approximately 40% of the
Polycom stockholders will be entitled to $3.12 “Mitel has a simple vision - to provide market. Financial highlights of the transaction outstanding Mitel common shares.
in cash and 1.31 Mitel common shares for each seamless communications and collaboration include:
Mitel intends to nance the cash portion
share of Polycom common stock, or $13.68 to customers. To bring that vision to life we Diverse revenue base with pro forma 2015 of the consideration for the acquisition, and
based on the closing price of a Mitel common are methodically putting the puzzle pieces
sales of approximately $2.5 billion
the re nancing of its existing credit facilities
share on April 13, 2016. e transaction in place to provide a seamless customer Strong cash ow generation with pro forma and those of Polycom, using a combination of
represented a 22% premium to Polycom experience across any device and any 2015 EBITDA of approximately $350 million cash on hand from the combined business and
shareholders based on Mitel’s and Polycom’s environment,” said Mitel CEO Rich McBee. Strengthened balance sheet with Mitel’s pro
proceeds from new nancing and has received
“una ected” share prices as of April 5, 2016 and “Polycom is one of the most respected brands forma 2015 net debt leverage reduced from 3.8x nancing commitments from BofA Merrill
is expected to close in the third quarter of 2016, in the world and is synonymous with the to 2.1x
Lynch of approximately $1.1 billion in the
subject to shareholder and regulatory approvals high quality and innovative conference and Expected to be accretive to Mitel shareholders aggregate.
and other customary closing conditions.
video capabilities that are now the norm
in 2017
BofA Merrill Lynch is serving as Mitel’s
New company with shared vision for seamless of everyday collaboration. Together with Anticipated operating synergies of nancial advisor, with Paul, Weiss, Ri ind,
communications and collaboration
industry-leading voice communications from approximately $160 million by 2018, driven Wharton & Garrison LLP and Osler, Hoskin &
e communications and collaboration Mitel, the combined company will have the by supply chain optimization, facilities Harcourt LLP providing legal advice to Mitel.
industry is undergoing a period of intense talent and technology needed to truly deliver consolidation and economies of scale
Morgan Stanley is serving as Polycom’s
change that is rapidly redrawing the competitive integrated solutions to businesses and service Sources:
nancial advisor, with Wilson Sonsini Goodrich
landscape and breaking down barriers between providers across enterprise, mobile and cloud Source: Synergy Research Group, March 2016 & Rosati providing legal advice to Polycom and
previously discrete markets and technology environments.”
Source: MZA Limited, March 2016
Morrison & Foerster LLP providing legal advice
domains. rough a series of strategic “Together, Polycom and Mitel expect to Source: Frost & Sullivan, Global Audio
to Polycom’s Board of Directors.
acquisitions, Mitel has successfully capitalized drive meaningful value for our shareholders, Conferencing Endpoints, November 2015 Conference Call Information
on changing market dynamics and transformed customers, partners and employees around Source: Synergy Research Group, September
Mitel and Polycom will host a joint conference
the company to help customers operate more the world,” said Peter Leav, President and CEO 2015
call and webcast accompanied by slides today
e ciently and cost e ectively. e combination of Polycom. “We look forward to working Source: Q4 2015 UC Market Tracker -
at 8:30 a.m. ET (5:30 a.m. PT) to discuss the
of Mitel and Polycom will create a new industry closely with the Mitel team to ensure a smooth Telepresence Market Share Data Reports, transaction. To access via tele-conference, please
leader leveraging Mitel’s recognized leadership transition and continued innovation to bring February, 2016
dial (888) 734-0328. Participants dialing in
as a pioneer in global communications with the workplace of the future to our customers.”
Source: Frost & Sullivan, Global Audio from outside of Canada and the United States
Polycom’s well-known premium brand and Global scale and strategic scope provide key Conferencing Endpoints, November 2015
can dial (678) 894-3054.
industry-leading portfolio in the conference and customer bene ts
Transaction Details
Live internet access for this call will be
video collaboration market.
e combined global company will o er Each of Mitel’s and Polycom’s Boards of available through the Investor Relations section
e combined company will be headquartered customers an integrated technology experience Directors have unanimously approved the of Mitel’s website at www.mitel.com. Slides will
in Ottawa, Canada, and will operate under
supported by an impressive ecosystem of transaction and are resolved to recommend be available on April 15 in conjunction with this
the Mitel name while maintaining Polycom’s partners. Key market positions include:
that its shareholders vote in favor of the release. To access the presentation slides, please
strong global brand. Richard McBee, Mitel’s #1 in business cloud communications (i) transaction. Mitel’s directors and executive go to the Investor Relations section of Mitel’s
Chief Executive O cer will lead the combined #1 in IP/PBX extensions in Europe (ii) o cers, as well as Kanata Research Park and website at www.mitel.com or use this link: http://
organization. Steve Spooner, Mitel’s Chief
#1 in conference phones (iii)
funds managed by Francisco Partners, have
investor.mitel.com/events.cfm. n

TIA: The Winding Road to the Next
2016, where there is a track dedicated to
this issue that will cover:
Licensed vs. unlicensed spectrum
Generation of Wireless
LTE-U and Wi-Fi interoperability
How do Japan, South Korea, and
Europe look at 5G and how do their views
compare to that of the U.S.? How will 5G
be de ned?
Is high band spectrum appropriate for The Telecommunications Industry It’s all in the eye of the beholder.” is the Mobil Now Act that, according to
5G? How does it compare with low band Association (TIA) is the leading trade There’s a lot of excitement about the
Srihari, is basically targeted at making
spectrum?
association representing the global next generation, but wait -- we’re not improvements in wireless networks
Will 5G spectrum be harmonized across information and communications sure how the next generation will be geared towards 5G. Including a piece on
all world regions?
technology (ICT) industry through de ned. The U.S. is in a race. The U.S. making more federal spectrum available
Comparisons of 5G and Wi-Fi
standards development, policy initiatives, has dominated 4G/LTE but there is sti for commercial mobile broadband use
Small Cells, DAS and 5G deployment business opportunities, market competition from Japan and South Korea by having the Department of Commerce
Alternative networks for IoT, e.g., Long-
intelligence and networking events. With on how the next generation of wireless (DOC) and FCC work together. It
range Low Power Radio-Access Networks support from hundreds of members,
will be de ned.
also includes a number of provisions
and SIGFOX
TIA enhances the business environment What’s the pathway for suppliers
that facilitate wireless broadband
Will millimeter wave mobile for companies involved in telecom, and carriers to the next generation? infrastructure deployment.
communications be used for 5G?
broadband, mobile wireless, information This question is what is guiding TIA’s Srihari went on to discuss a bill that asks
More about the bene ts of 5G: faster, technology, networks, cable, satellite, future plans for next-generation and 5G the DOC to work with a number of other
ultra-low latency, even more connected uni ed communications, emergency networks at TIA 2016.
agencies on a study regarding the needs
world – the IoT of the future
communications and the greening of Doug Green, Publisher of Telecom of IoT systems so that we end up with a
Virtual reality and 5G
technology. TIA is accredited by ANSI.
Reseller, recently interviewed Dileep coordinated policy and standards across
Increasing capacity with small cells – At the Mobile World Congress 2015 held Srihari Director, of Legislative & the federal government.
1000x vs. 4G
in Barcelona, FCC Chairman Tom Wheeler Government A airs for the TIA, about Listen to the podcast at http://tinyurl.
For more on the conference, and to compared 5G to a Picasso painting. “I see legislation currently working through com/zclq jm7
register, go to http://www.tia2016.org something di erent than you see,” he congress that may a ect wireless More can be learned during the TIA
More on TIA at www.tiaonline.org n
said. “I think that’s where 5G is right now.
networks: in particular, 5G. One of these
annual conference, Network of the Future