Mitel announces $230 Million IPO announcement. Where are you Mitel ?

by Jeff Wiener on December 25, 2009

MitelNetworks_Logo_blackMItel’s on again, off again IPO plans seem to be on again with their recent filing to raise up to $230 Million in stock. Their last attempt at an IPO back in 2006 was halted due to the merger of Mitel and Inter-Tel.

According to The Ottawa Citizen this would be the largest IPO by an Ottawa based company followed by the $124 Million Entrust IPO done in 1998.

Mitel is owned by “Sir” Terry Matthews, Canada’s technology king. An interesting tidbit of useless information: Mitel stands for “Mike and Terry’s Lawnmowers” stemming back to their initial start at selling lawnmowers when they first started back in 1973. Their first shipment of 3 lawnmowers were lost in transit prompting the two partners to drop the lawnmower business in favour of telecom technology. Mike is Michael Cowpland (formerly Corel). Terry’s other large tech venture was Newbridge which was sold to Alcatel for $7 Billion.

Mitel is of course best known for their phone systems – they have a series of products with their primary line known as the 3300 IP and their older line SX-200 IP.

They will apparently use some of the cash to pay down some of their $319 Million debt, and raise their current $28 Million cash reserves. Perhaps they might also use some of the cash to fund their recently announced aggressive expansion into New Zealand and Australia as they have apparently added upwards of 25 new resellers in that region within the last year.

Mitel has been surprisingly quiet from a competitive positioning perspective over the last year. With Nortel’s recent bankruptcy this has left a large void in the North American landscape that you would expect a large player like Mitel to aggressively pursue. I say this more from a personal perspective without real knowledge of their expansion plans. I’m just not seeing them in competitive bids which is surprising considering their Canadian roots. With the recession ending and Nortel gone from the market place this has left an amazing opportunity for companies like Mitel to capture some new market share. Let’s see what 2010 has to offer from a competitive perspective.

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Mitel Announces IPO Closure, Joins Blackberry Alliance Program —
August 13, 2012 at 6:23 am

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