Mitel concludes Inter-Tel buy, Zarlink cashes out

Mitel.jpgMitel Networks Corp. finalizes its US$723-million acquisition of Arizona-based Inter-Tel Inc. The deal became final two days after a Delaware court ruling denied a group of dissident shareholders its request for an injunction to block the transaction. In early August, 62% of Inter-Tel stockholders voted in favor of Mitel’s buyout offer. According to Mitel, the combined company is now the leading supplier of IP-based telecom services to the SMB market in North America and has revenues of more than US$800 million. Mitel plans to retain Inter-Tel’s Arizona headquarters as an R&D centre and the nexus of its US operations.

Zarlink.jpgIn related news, Zarlink Semiconductor Inc. sold its holdings in Mitel for US$12.9 million on completion of the Inter-Tel deal. Zarlink had owned a piece of Mitel since 2001, when the old Mitel spun off its semiconductor business, creating Zarlink. The sale will raise Zarlink’s Q2 earnings by ten cents a share, says the company.

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