Menu
Mitel and Aastra close $US374 million merger

Mitel and Aastra close $US374 million merger

The merged companies now boast an annual combined revenue of more than $US1 billion

Mitel Networks Corporation and Aastra Technologies have finalised their $US374 million merger.

Aastra will now fall under the Mitel banner, which now boasts an annual combined revenue of $US1.1 billion and 60 million customers worldwide.

Under the terms of the arrangement, shareholders of Aastra received $US6.52 in cash plus 3.6 common shares of Mitel for each Aastra common share held.

The total amount of cash paid by Mitel was approximately $US80 million and the number of Mitel shares issued was 44,162,509.

Mitel financed the transaction from cash on hand and from a portion of the proceeds from the new credit facility.

Mitel chief executive, Richard McBee, said the merger created the financial scale and operational leverage to drive shareholder value and profitable growth in an opportunity-rich consolidating market.

“We now have double the talent, tools and range of solutions to aggressively compete for a greater share of our market.”

In conjunction with the closing of the merger, Mitel completed financing of a $US405 million credit facility consisting of a $US355 million term loan maturing in January 2020, and an undrawn $US50 million revolving credit facility maturing in January 2019.

Mitel chief financial officer, Steve Spooner, said he was pleased to have secured new credit facilities on very favourable terms.

“Our new capital structure, combined with the enhanced cash flow generation we expect from the merger, positions Mitel with one of the best financial platforms in the industry.”

Proceeds from the new credit facilities were used to finance the merger of Aastra, repay the $US259 million outstanding under the existing credit facilities, as well as fees and expenses related to the transactions.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Aastra TechnologiesMitel chief executive Richard McBeeMitel chief financial officerSteve Spooner

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments