Mitel Networks Corp. (NASDAQ: MITL) and Aastra Technologies Ltd. (TSX: AAH) said they have entered into an agreement for Mitel to acquire all of the outstanding Aastra common shares for USD6.52 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 CAD31.96 per Aastra common share, a total value on closing to Aastra shareholders of CAD392M and represents a 20.9% premium to the 30-day volume weighted average price of Aastra common shares as of November 8, 2013.
The strategic move, designed to build scope and scale in a consolidating market, will create abn dollar company with one of the largest global footprints in the industry, #1 market share in Western Europe, a USD100m cloud business, and a global installed customer base ready for upgrade as the USD18bn 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, Richard McBee.
Mitel is a global provider of unified communications and collaboration software, solutions and services that enable organizations to conduct business anywhere, over any medium with the device of their choice. For more information visit www.mitel.com.
Headquartered in Concord, Ontario, Canada, Aastra Technologies develops and delivers innovative and integrated solutions that address the communication needs of businesses small and large around the world. For additional information on Aastra visit http://www.aastra.com