Founded in Ottawa in 1973, the Canadian technology company provides software applications, network services and other communication solutions for businesses throughout the world. Its shares currently trade on NASDAQ, as well as TSX.
“There’s a growing interest in Canada for technology stocks,” says Mitel’s CFO, Steve Spooner. “With a dual listing, we can expand our shareholder base and gain access to a knowledgeable investor base in Canada.”
Founded by Michael Cowpland and Terry Matthews, former colleagues at Bell Northern Labs, the company’s telephony products captured a loyal and enthusiastic market. After revenues surpassed $100 million, the company was sold to British Telecom in 1985, and its founders turned their attention to other ventures, including Corel Systems and Newbridge Networks.
In 2000, Matthews sold Newbridge and reacquired control of Mitel, transforming it into a broadband communications business. With its 2007 acquisition of Inter-Tel, the company had doubled in size by 2010, when Matthews, as chairman and a significant shareholder, took the company public for the second time. Mitel now ranks third in the world in its sector, with annual revenues of more than $600 million.
“The expansion of our trading to include both NASDAQ and Toronto Stock Exchange platforms has been an objective of ours since our initial public offering in 2010,” Spooner says.
A listing on TSX will raise Mitel’s profile among technology sector analysts while improving its home market valuations and trading liquidity. It will also attract investors and help the company in raising capital. “By listing on TSX, it’s easier for Canadian institutions to participate (in trading),” said Ron Shuttleworth, an analyst with M Partners Inc. in Toronto.