GEC NEWS WIREWith More Than a Billion Dollars in Combined Annual Revenue and the Best Path to the Cloud, Mitel is a Clear Market Leader
Mitel Networks Corporation has completed its merger with Aastra Technologies Limited. With US$1.1 billion of combined annual revenue and 60 million customers worldwide, Mitel now has one of the largest global footprints in the industry and is driving consolidation in the US$18 billion business communications market, the press release stated.
“With this merger the combined annual revenue of Mitel exceeds a billion dollars, which we believe creates the financial scale and operational leverage to drive shareholder value and profitable growth in an opportunity-rich consolidating market,” said Richard McBee, President and Chief Executive Officer of Mitel. “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 $405 million credit facility consisting of a $355 million term loan maturing in January 2020 and an undrawn $50 million revolving credit facility maturing in January 2019. The $355 million term loan is priced at LIBOR, plus 4.25% with a LIBOR floor of 1.00%. The undrawn $50 million revolving credit facility is priced at LIBOR, plus 4.25%.
Mitel acquired all of the issued and outstanding Aastra common shares. Under the terms of the Arrangement, shareholders of Aastra received US$6.52 in cash plus 3.6 common shares of Mitel (the “Mitel Shares”) for each Aastra common share held. The total amount of cash paid by Mitel was approximately US$80.0 million and the number of Mitel Shares issued was 44,162,509.
