Mitel IPO

May 10, 2006
Mitel Networks Corp., a Canadian VoIP and communications company today filed with U.S. regulators for an initial public offering of common shares in the United States and Canada. Michael Cowpland and Terry Matthews founded Mitel in 1973. Mitel's name is a combination of the founders’ first names and their first product - MIke and TErry's Lawnmowers. The story from lawnmowers to VoIP phone systems is an interesting one.

Based out of Ottawa, Ontario, Mitel said in a filing with the U.S. Securities and Exchange Commission that Morgan Stanley, RBC Capital Markets and Merrill Lynch & Co. would be the lead underwriters for the offering. They did not disclose how many shares the company plans to sell or at what price.

According to Reuters, Mitel said it will use the proceeds from the IPO for working capital, to expand selling and marketing activities, for research and development programs, and for general corporate purposes, which may include acquisitions.

For the nine months that ended Jan. 31, Mitel reported a net loss of $21.9 million on $285.2 million of revenue. For the year-earlier period, the company posted a net loss of $34 million on $251.1 million of revenue.

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