On October 27, 2014 ShoreTel announced that it had decided to reject the unsolicited proposal from Mitel to acquire the company. After careful consideration and evaluation assistance from its independent financial and legal advisors, the ShoreTel Board of Directors believes the Mitel offer of $8.10 per share undervalued the company’s growth projection and technological developments.
The decision was unanimous amongst all board members, who agreed that the current strategy in place for ShoreTel will create the most value for stockholders. The company currently has created a world-class reputation, brought in organic revenue growth over the past 6 consecutive quarters, and has generated more operating cash flow in the past 4 quarters than the last 4 years combined.
The company has also successfully executed its strategy to enter and lead the cloud-based unified communication sector. ShoreTel is currently developing the industry’s first hybrid UC solution that combines both cloud and on-premise environments. This is expected to launch in April 2015, which is sooner than originally anticipated.
Don Joos, President and CEO of ShoreTel, stated that ” We are confident that we have the right people, technology and products in place to execute our strategic plan and deliver significant value to our stockholders, and that the continued execution of this strategic plan will deliver substantially more value to ShoreTel stockholders than Mitel’s inadequate proposal.
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Also look into the ShoreTel cloud-based hosted Solution ShoreTel Sky.