Mitel Networks Corp. and Aastra Technologies Ltd. agreed to merge, creating a combined company with a global customer base of 60 million end users.
Under the terms of the “definitive arrangement,” agreed by the boards of both companies, Mitel will acquire all Aastra’s outstanding stock for $6.52 in cash plus 3.6 Mitel shares for each Aastra share, the companies said today in a joint statement. Using the closing Mitel share price on Nov. 8, 2013, and a Canadian dollar to U.S. dollar exchange rate of 0.9531, this amounts to C$31.96 per Aastra common share.
“The business communications market is ripe for consolidation and on the cusp of a mass migration to cloud-based services,” Mitel Chief Executive Officer Richard McBee said in the statement. “Small competitors with narrow focus and limited global reach will quickly be marginalized.”