Mitel converges on Inter-Tel deal

Converged communications provider Mitel has acquired US business communications supplier Inter-Tel in a US$723 million deal, the two companies announced this week.

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By  Administrator Published  May 3, 2007

Converged communications provider Mitel has acquired US business communications supplier Inter-Tel in a US$723 million deal, the two companies announced this week.

The firms said the deal, which is expected to close in the third quarter, would create a market leader in internet protocol (IP) communications solutions.

Terence Matthews, chairman of Mitel, described the match as a ‘win-win' situation. "These are two entrepreneurial companies with the agility, flexibility and drive to win in the global market," he said.

Inter-Tel, which is headquartered in Arizona, US, offers communications products, applications utilising networks, server-based communications software and a range of managed services.

Mitel said the acquisition would enable it to extend its leadership in the small and medium-business (SMB) sector and expand into the large enterprise IP communications market.

"Inter-Tel's achievements, particularly in North America, include creating successful managed service offerings that we intend to extend worldwide," said Mitel CEO Don Smith.

Mitel said it expects to double its sales to over US$800 million through the deal.

The Canadian firm has enjoyed growing success in the Middle East recently, winning key contracts for its IP solutions with the likes of Jeddah Islamic Port, Dubai Courts and Yemen's Public Telecommunications Corporation (PTC).

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