Unified communications specialist ShoreTel is exploring making some changes–including spinning off assets, restructuring or possibly a company sale.
It has formed a Strategic Advisory Committee of independent directors to advise its Board in evaluating “a range of strategic alternatives.” Those alternatives include: a company sale, the divestiture or acquisition of assets, licensing agreements, a realignment of operations, joint ventures and partnerships, or a continuation of our the strategic plan.
“ShoreTel has shown solid growth in our cloud business as part of our strategic transformation,” said Don Joos, president and CEO of ShoreTel. “As global demand for cloud communications increases and the world shifts towards cloud services, we are seeing more and larger opportunities. To continue to ensure we are well-positioned to maximize the opportunity ahead of us, we believe this is the right time to review the options for the next phase of the company’s growth.”
Joos added, “As part of our ongoing strategic process, the Strategic Advisory Committee intends to evaluate all options thoughtfully and thoroughly. I can assure our shareholders, employees, customers and partners that we will only embark on a new course if it offers superior value for shareholders, but we remain fully committed to continuing to deliver innovative solutions and an excellent experience to our customers as we scale and grow our hosted business.”
There is no assurance that the review of strategic alternatives will result in any transaction or other strategic alternative–and the company said hat it won’t be discussing the matter further until decisions have been made.
The Company has retained J.P. Morgan Securities as its financial advisor and Fenwick & West LLP as its legal counsel to assist in this review process.
In the meantime, Marjorie Bowen has been appointed to the board of directors and will serve as a member of the previously formed Strategic Advisory Committee. ShoreTel has an ongoing outreach to shareholders to discuss a range of business topics and through these discussions with two shareholders, Ancora Advisors, LLC and Legion Partners Asset Management, LLC, Marjorie Bowen was identified as a potential candidate. With this appointment, ShoreTel’s Board has increased to nine members, eight of whom are independent.
“We welcome Marjorie to the ShoreTel board. She is recognized as a financial expert and brings broad corporate governance expertise in implementing strategic and operational change,” said Chuck Kissner, chairperson of the ShoreTel board.
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