In a major step toward the much-predicted consolidation of the enterprise communications vendor marketplace, Mitel announced this morning that it is merging with its fellow Canadian vendor, Aastra.
Mitel will acquire all outstanding shares of Aastra stock for $392 million (Canadian) or US$374.22. In addition to the cash payment, which breaks down to US$6.52 for each Aastra share, Mitel will swap 3.6 shares of its own stock for each Aastra share it acquires, giving the Aastra shareholders control of 43% of the shares of the expanded Mitel.
Though it's being positioned as a merger, the Mitel control will extend to branding and leadership; the combination will operate under the Mitel name and be led by Mitel CEO Rich McBee, the company reported. Aastra's Co-CEOs will take top positions in the new Mitel, with Francis Shen becoming Mitel's Chief Strategy Officer, and Tony Shen taking the position of Chief Operating Officer.
Among the key data points cited in the merger release; the combined company will have:
* 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
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