ACQUISITIONS

6 Months Ended

Jun. 30, 2018

3. ACQUISITIONS

ShoreTel – September 2017

On September 25, 2017, Mitel acquired ShoreTel, Inc. (“ShoreTel”), a provider of unified video, voice and content communications solutions, primarily in the U.S., with revenues of $357.8 for the twelve months ended June 30, 2017. Mitel acquired all of the outstanding shares of common stock of ShoreTel in exchange for total consideration of $531.4. In conjunction with the acquisition, the Company completed a refinancing of its long-term senior debt. Additional details on the acquisition are included in note 3 to the Annual Financial Statements.

The following unaudited pro-forma financial information presents the Company’s consolidated financial results as if the acquisition had occurred at the beginning of the period:


	Three Months Ended June 30, 2017			Six Months Ended June 30, 2017
Revenues	$	333.7		$	643.9
Net loss	$	(24.4	)	$	(71.1	)
Net loss per share	$	(0.20	)	$	(0.58	)

These pro-forma results have been prepared for comparative purposes only and are not necessarily indicative of the results of operations that actually would have resulted had the acquisition been effected at the beginning of the respective periods and are not necessarily representative of future results. The pro-forma results include the following adjustments:

•

Amortization of intangible assets that arose from the acquisition of $74.2 per year.

•

Increase to interest expense of approximately $21.0 per year as a result of the additional borrowings incurred to finance the acquisition.

•

A tax provision based on an estimated effective tax rate of nil as a result of unrecognized tax loss carryforwards.

MITEL NETWORKS CORP 10-Q