Mitel receives $55m investment from US institutional investors

Mitel, a leading provider of IP communications solutions, has secured a US$55 million investment from a group of US-based institutional investors. The investment round was in the form of convertible debt financing over a five-year term. JPMorgan acted as the sole agent on the transaction. Mitel will use the funds as working capital to support the ongoing sales growth of its comprehensive portfolio of IP telephony solutions.

"We are delighted with this strong endorsement from the investment community and it represents one of the largest communications technology financing transactions in recent years," said Andy Bull, director, Mitel.

"To secure a private financing round of this size is an attractive deal for Mitel shareholders," says Bull.

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Bull says this cash injection provides Mitel with the balance sheet strength to better compete and continue its growth in the IP telephony market, a market which is predicted to exceed US$10 billion by 2009.

Mitel leverages the power of broadband networks and Internet Protocol, to deliver a range of solutions that address the complete communications requirements of businesses today. Mitel`s portfolio includes IP telephony, mobility, conferencing and collaboration, messaging and contact centre solutions enabling businesses to save money while increasing operational efficiencies and employee productivity and by providing opportunities for improving customer loyalty and retention, and driving new revenue streams.