Nov. 11 (Bloomberg) -- 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.”
To contact the reporter on this story: Tim Farrand in Edinburgh at firstname.lastname@example.org
To contact the editor responsible for this story: David Risser at email@example.com