Mitel buying Inter-Tel for US$723 Million

Mitel Networks Corporation signs a definitive merger agreement whereby it will acquire Tempe, Arizona-headquartered Inter-Tel Incorporated, a full-service provider of business Mitel.jpgcommunications solutions. Mitel will pay US$25.60 per Inter-Tel share, for a total cash purchase of approximately US$723 million. “I believe this is a great fit and a win-win for all involved,” says Terry Matthews, Mitel chairman “These are two entrepreneurial companies with the agility, flexibility and drive to win in the global market.” According to Mitel, the combined companies will form “a market leader in the US and UK small- and medium-sized IP communications industry” with anticipated revenues of over US$800 million. The merged private company, which will include Inter-Tel subsidiaries such as Inter-Tel Europe, Swan Solutions and Lake Communications, will promote two distinct brands in over 90 countries, targeting companies, from the very small to the biggest of the big, in industries such as finance, healthcare, hospitality, retail, government and education. “We believe this is an outstanding transaction for our stakeholders,” says Inter-Tel chief executive Norman Stout. “Mitel and Inter-Tel have state-of-the-art products and complementary channels to market. In particular, we are excited about the opportunities this partnership represents for Inter-Tel’s associates and partners, who we believe will benefit from being part of a larger, growing and dynamic organization that can compete more effectively in the marketplace.” Given the green light by the boards of both companies, the transaction is expected to close in the third quarter of 2007, pending the approval of Inter-Tel stockholders and customary closing conditions, including regulatory approvals.

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