Mitel, Aastra announce plan to merge
Merger creates a billion-dollar company with a global installed base
Mitel Networks Corporation, a global provider of cloud and premise-based UC software solutions, and Aastra Technologies Limited, an enterprise communications solutions vendor, have entered into a definitive agreement under which Mitel will acquire all of the outstanding Aastra common shares for $6.52 in cash plus 3.6 Mitel common shares per each Aastra common share.
Using the Mitel closing common share price on 8 November 2013, and a CAD/USD exchange rate of 0.9531, this amounts to CAD$31.96 per Aastra common share, a total value on closing to Aastra shareholders of CAD$392 million, and represents a 20.9% premium to the 30-day volume-weighted average price (VWAP) of Aastra common shares as of 8 November 2013.
According to the two vendors, the deal was unanimously approved by the Boards of Directors of both companies.
The strategic move, designed to build scope and scale in a consolidating market, will create a billion dollar company with one of the largest global footprints in the industry.
The combined company will be headquartered in Ottawa, Canada and will operate under the name Mitel while continuing to leverage Aastra's strong brand recognition in select European markets. The executive management team will continue to be led by current Mitel president and CEO, Richard McBee.
"The business communications market is ripe for consolidation and on the cusp of a mass migration to cloud-based services. We believe that small competitors with narrow focus and limited global reach will quickly be marginalised," said McBee. "Aastra's solid financial structure, complementary portfolios, geographic reach, and large installed-base immediately augment and expand Mitel's market footprint, enabling us to capitalise on a unique opportunity to leap-frog the competition and lead the market."