One of the richest men in Wales is about the become even richer after selling telecoms company Mitel, which has a Welsh base in Caldicot, for $2bn (£1.43bn).
Sir Terry Matthews, who also owns the Celtic Manor Resort in Newport, set up telecommunications firm Mitel in 1972.
Based in Canada, but which has a site at Castlegate Business Park, Caldicot, the firm is being bought by private investment firm Searchlight in a deal valuing the company at $2bn.
The 74-year-old is one of only five Welsh billionaires with a total net worth of £1.17bn.
He is ranked in fourth position on the top 10 richest people in Wales according to the Sunday Times Rich List.
The Newport-born billionaire was previously the richest man in Wales until 2012.
His fortune has been eclipsed by Sir Michael Moritz who tops the list with £176bn fortune which he shares with his wife Harriet Heyman.
The board of directors has unanimously determined that the transaction is in the best interests of Mitel and fair to Mitel shareholders, and will recommend that Mitel shareholders approve the arrangement.
In a statement company chairman Sir Terry Matthews said: “Mitel has succeeded for 45 years because of persistent innovation and relentless focus on delivering shareholder value.
“Our Board determined that this transaction, upon closing, will deliver immediate, significant and certain cash value to our shareholders.
“It also affirms the tremendous value and market leadership of Mitel. We believe this transaction will provide Mitel with additional flexibility as a private company to pursue the company’s move-to-the-cloud strategy.”
Mitel CEO, Rich McBee, added: “This transaction is an exciting next step in our multi-year transformation that has enabled Mitel to emerge as an industry leader in the largest markets in the world.
“As a private company, and with the strategic and capital support of the Searchlight funds, we will have greater flexibility to manage the transition in our market, accelerate our strategy, and drive the next phase of success for our customers, partners, and employees.”
The transaction is expected to close during the second half of 2018, subject to customary closing conditions, including receipt of shareholder, regulatory and court approvals.
Our BQ Bulletin emails will land in your inbox at 7.30am, Monday to Friday, with a mix of the latest local business news, national news, and features to inspire you. Sign up here!
Click here to read our privacy statement