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TheStreet Open House

Mitel And Aastra Announce Plan To Merge

Stocks in this article: MITL

Combination creates a billion dollar company with a global installed base and the technology and scale to migrate those customers, and the broader market, to cloud based solutions.

  • US$1.1 billion total revenue
  • US$100 million cloud business
  • Global customer base of 60 million end users
  • #1 market share in Western Europe
  • Competitive solutions portfolio to address businesses of any size
  • Attractive synergies expected within first 24 months
  • Accelerated path to further de-leverage the business

OTTAWA and TORONTO, Nov. 11, 2013 (GLOBE NEWSWIRE) -- Mitel Networks Corporation (Nasdaq:MITL) (TSX:MNW), a leading provider of cloud and premises-based unified communications software solutions, and Aastra Technologies Limited (TSX:AAH), a leader in enterprise communications, today announced that they have entered into a definitive arrangement agreement unanimously approved by the Boards of Directors of both companies, under which Mitel will acquire all of the outstanding Aastra common shares for US$6.52 in cash plus 3.6 Mitel common shares per each Aastra common share. Using the Mitel closing common share price on November 8, 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$392M and represents a 20.9% premium to the 30-day volume weighted average price (VWAP) of Aastra common shares as of November 8, 2013.

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, #1 market share in Western Europe, a US$100 million cloud business, and a global installed customer base ready for upgrade as the US$18 billion business communications market prepares to migrate to software-based cloud services.

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 Chief Executive Officer, Mr. Richard McBee.

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