UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
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Preliminary Proxy Statement | ||
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) | ||
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Definitive Proxy Statement | ||
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Soliciting Material under §240.14a-12 | ||
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BOINGO WIRELESS, INC. | |||
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant) | |||
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Copies to:
Ilan Lovinsky, Esq. Ryan Gunderson, Esq. Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, LLP 3570 Carmel Mountain Rd., Suite 200 San Diego, CA 92130 (858) 436-8000
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Boingo Wireless, Inc., a Delaware corporation (Boingo or the Company), is filing materials contained in this Schedule 14A with the U.S. Securities and Exchange Commission (SEC) in connection with the solicitation of proxies from its stockholders in connection with its 2016 Annual Meeting of Stockholders, to be held on June 9, 2016 at 10:30 a.m. local time at the Hotel Palomar located at 10740 Wilshire Boulevard, Los Angeles, California, 90024 and at any and all adjournments, postponements or reschedulings thereof (the 2016 Annual Meeting). The Company filed a definitive proxy statement with the Securities and Exchange Commission on April 28, 2016 and mailed the definitive proxy statement to its stockholders (the Boingo Proxy Statement).
Press Release Issued on May 23, 2016
Included below is a press release issued by Boingo on May 23, 2016, which commented on Boingos investor presentation first used on May 23, 2016, which discusses, among other items, why stockholders should vote the WHITE proxy card to support the election of Boingos highly qualified and very experienced nominees, Charles Boesenberg and Terrell Jones, at the 2016 Annual Meeting and reject the nominees presented by four individual stockholders, together with a new hedge fund affiliated with two of the stockholders, Ides Capital (collectively, the Ides Group).
Important Additional Information And Where To Find It
In connection with its solicitation of proxies for the 2016 Annual Meeting of Stockholders, Boingo has filed with the SEC and mailed to stockholders the Boingo Proxy Statement together with a WHITE proxy card. Boingo, its directors and its executive officers are deemed to be participants in the solicitation of proxies from stockholders in connection with the 2016 Annual Meeting. Information regarding the interests of such participants is included in the Boingo Proxy Statement and other relevant documents filed and to be filed by the Company with the SEC in connection with the proxy solicitation. To the extent holdings of Boingos securities change from the amounts shown in the Boingo Proxy Statement, such changes will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC.
INVESTORS AND STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE BOINGO PROXY STATEMENT AND THE ACCOMPANYING WHITE PROXY CARD AND OTHER DOCUMENTS FILED BY BOINGO WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION.
Stockholders may be able to obtain an additional copy of Boingo Proxy Statement, any amendments or supplements thereto, the accompanying WHITE proxy card, and other documents filed by Boingo with the SEC for no charge at the SECs website at www.sec.gov. Copies will also be available at no charge at the Investor Relations section of the Companys corporate website at www.boingo.com, by writing to the Companys Corporate Secretary at Boingo Wireless, 10960 Wilshire Blvd., 23rd Floor, Los Angeles, California 90024, or by calling the Companys Corporate Secretary at (310) 586-5180.
FOR IMMEDIATE RELEASE
Boingo Wireless Files Investor Presentation
Outlines Boingos Strong Financial and Operational Results
Details Board and Managements Success in Executing on Boingos Strategic Transformation
Highlights Lack of Strategic Plan and Ever-Evolving Demands Made by the Ides Group(1) who, with its Minimal Short-Term Shareholding, Would Disrupt Boingos Progress and Add NO Value to the Board
Boingo Recommends Stockholders Vote FOR Boingos Highly Qualified Director Nominees on the WHITE Proxy Card
LOS ANGELES, Calif. May 23, 2016 Boingo Wireless (NASDAQ: WIFI) (the Company), the leading distributed antenna system (DAS) and Wi-Fi provider that serves consumers, carriers and advertisers worldwide, today announced that it has filed an investor presentation with the Securities and Exchange Commission (SEC) in connection with the Companys 2016 Annual Meeting of Stockholders to be held on June 9, 2016. Boingo stockholders of record at the close of business on April 13, 2016, are entitled to vote at the 2016 Annual Meeting.
The presentation and other materials regarding the Board of Directors recommendation for the 2016 Annual Meeting are available on the Investor Relations section of the Companys corporate website at www.boingo.com and on the SECs website at www.sec.gov.
The ambitious transformation Boingo has been executing for the past three years is beginning to bear fruit, as evidenced by our strong 2015 and first quarter 2016 financial and operational results, said Dave Hagan, Chairman and Chief Executive Officer of Boingo Wireless. We remain committed to delivering high growth and high value to our stockholders as we continue to execute against our strategic initiatives and capitalize on mobile data growth and network densification trends. In stark contrast, the Ides Group, which owns less than 0.5% of Boingo and is a short-term holder with a self-serving agenda, is demanding 33% control of the Board without offering any plan, posing a significant risk to the future success of Boingo.
The Boingo Board of Directors strongly recommends that stockholders protect the value of their investment by voting on the WHITE proxy card FOR Boingos experienced, independent and highly-qualified director nominees: Charles Boesenberg and Terrell Jones.
Highlights of the presentation include:
Boingo believes it is poised to realize the benefits of its strategic plan and leverage its market leadership position
(1) Ides Group consists of a group of individuals and a related fund, Ides Capital.
· Boingos Board and management team are delivering high growth and high value to stockholders, as underscored by first quarter 2016 results, which included:
· 6th consecutive quarter of double-digit revenue growth
· 9th consecutive quarter of revenue at the high-end or above guidance
· 3rd consecutive quarter of year-over-year gross margin improvement of at least 150 basis points
· Boingo has outperformed its peer group(2) and NASDAQ over the 2016 year-to-date period
· Looking ahead, management expects to return to positive free cash flow in the second half of 2016 and realize substantial recurring cash flows from significant investments in network assets
Boingos experienced Board and skilled management team are committed to the Companys success and strong governance practices
· Boingo has an experienced Board of proven business leaders with an average tenure of approximately 3.5 years
· Boingos two independent director nominees bring critical experience to the Boingo Board and have strong track records of creating shareholder value at other companies where they either served on the board or held executive positions
· The Boingo Board is guided by best corporate governance practices, including:
· Active board refreshment, with all independent directors added in last five years
· Commitment to declassifying the Board
· No supermajority merger requirement
· No shareholder rights plan (poison pill)
· Adoption of majority voting standard for uncontested elections
· Boingo previously committed to expanding the Board in 2016 with a focus on diversity
· Commenced a search for new, diverse Board members in early 2016, prior to Ides involvement
· Ides Groups nominees have been invited, yet have refused, to participate in the Boards nomination process
Boingo has a track record of stockholder engagement and has made changes to executive compensation and incentive programs in response to stockholder feedback
· Say-on-Pay received 94.7% approval at the 2015 Annual Meeting
· As a direct result of stockholder feedback Boingo made further enhancements to its compensation and incentive programs:
· Half (50%) of CEO compensation is at risk, an increase from 23% in 2013
· Robust anti-hedging policy is in place for directors and officers
· Equity plans prohibit share recycling or re-pricing for options/RSUs
· CEO and CFO equity grants at 3-year cliff vesting with 50% performance component
(2) Boingo defines its peer group as ENT, GOGO, TWER, EGHT, RNG, AMT, CCI, and SBAC. Boingo also outperformed its ISS peer group for the same period. The peer group indices are weighted by the market capitalization of each stock in the respective index.
· Put in place additional measures to decrease the frequency of public market sales by the CEO and CFO
· The Board is committed to ensuring total compensation and incentive programs are in line with peers and best practices and will continue to take stockholder feedback into consideration
Ides Group is composed of four short-term holders with minimal share positions acquired less than six months ago
· Ides Group has presented no strategic plan and refuses to allow its nominees to meet with Boingo
· Ides Groups two hand-picked nominees have no relevant industry experience and minimal public board experience
· Throughout the duration of its interactions with Boingo, the Ides Group has demonstrated a lack of understanding of corporate governance best practices
· Adding the Ides Groups director nominees to the Board could seriously disrupt the execution of the Companys strategic plan
Remember, you can vote your shares by telephone or via the Internet.
Please follow the easy instructions on the enclosed WHITE proxy card.
If you have any questions or need assistance in voting
your shares, please contact our proxy solicitor:
105 Madison Avenue
New York, New York 10016
(212) 929-5500 (Call Collect)
or
Call Toll-Free (800) 322-2885
Email: proxy@mackenziepartners.com
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that involves risks, uncertainties and assumptions. Forward-looking statements can be identified by words such as anticipates, intends, plans, seeks, believes, estimates, expects and similar references to future periods. These forward-looking statements include, among other statements, any statements regarding Boingos strategic plans, value creation, stock price and operating results, the timing of results from the execution of the strategic plan and the effectiveness of Boingos Board in overseeing the execution of Boingos strategic plan. Forward-looking statements are based on
the Companys current expectations and assumptions regarding its business, the economy and other future conditions. Since forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. The Companys actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include our ability to maintain our existing and establish new relationships with venue partners, particularly key airport venue partners and military bases, our ability to maintain revenue growth and achieve profitability, our ability to execute on our strategic and business plans, our ability to successfully compete with new technologies and adapt to changes in the wireless industry, as well as other risks and uncertainties described more fully in documents filed with or furnished to the Securities and Exchange Commission (SEC), including Boingos Form 10-K for the year ended December 31, 2015 filed with the SEC on March 11, 2016 and Form 10-Q for the quarter ended March 31, 2016 filed with the SEC on May 9, 2016. Any forward-looking statement made by Boingo in this press release speaks only as of the date on which it is made. Factors or events that could cause the Companys actual results to differ may emerge from time to time, and it is not possible for Boingo to predict all of them. Boingo undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
About Boingo Wireless
Boingo Wireless, Inc. (NASDAQ: WIFI) helps the world stay connected. Our vast footprint of small cell networks covers more than a million DAS and Wi-Fi locations and reaches more than 1 billion consumers annually - in places as varied as airports, stadiums, universities, and military bases. For more information about the Boingo story, visit www.boingo.com.
Boingo, Boingo Wireless, the Boingo Wireless Logo and Dont Just Go. Boingo. are registered trademarks of Boingo Wireless, Inc.
Important Additional Information and Where to Find It
In connection with its solicitation of proxies for the 2016 Annual Meeting of Stockholders, Boingo Wireless, Inc. has filed with the SEC and mailed to stockholders a definitive proxy statement dated April 28, 2016 together with a WHITE proxy card. Boingo, its directors and its executive officers are deemed to be participants in the solicitation of proxies from stockholders in connection with the 2016 Annual Meeting. Information regarding the interests of such participants is included in the definitive proxy statement and other relevant documents filed and to be filed by the Company with the SEC in connection with the proxy solicitation. To the extent holdings of Boingos securities change from the amounts shown in the definitive proxy statement, such changes will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC.
INVESTORS AND STOCKHOLDERS ARE STRONGLY ENCOURAGED TO READ THE DEFINITIVE PROXY STATEMENT AND THE ACCOMPANYING WHITE PROXY CARD AND OTHER DOCUMENTS FILED BY BOINGO WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION.
Stockholders may be able to obtain an additional copy of definitive proxy statement, any amendments or supplements thereto, the accompanying WHITE proxy card, and other documents filed by Boingo with the SEC for no charge at the SECs website at www.sec.gov.
Copies will also be available at no charge at the Investor Relations section of the Companys corporate website at www.boingo.com, by writing to the Companys Corporate Secretary at Boingo Wireless, 10960 Wilshire Blvd., 23rd Floor, Los Angeles, California 90024, or by calling the Companys Corporate Secretary at (310) 586-5180.
Contacts
BOINGO WIRELESS
PRESS:
Lauren de la Fuente,
Vice President, Marketing and Communications
ldelafuente@boingo.com
(310) 283-8488
or
INVESTORS:
Kimberly Orlando
Addo Communications
kimberlyo@addocommunications.com
(310) 829-5400
JOELE FRANK, WILKINSON BRIMMER KATCHER
Jed Repko / Arielle Rothstein
(415) 869-3950
or
Sharon Stern / Viveca Tress
(212) 355-4449
MACKENZIE PARTNERS, INC.
Paul Schulman / Dan Sullivan
(212) 929-5500