Mitel to merge with Inter-Tel in £362m deal

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Canadian telecoms equipment company Mitel announced it will merged with business communications company Inter-Tel in a $723m (£362m) deal.

The deal, subject to the approval of Inter-Tel stockholders and regulatory approvals, will see the companies' product portfolios in unified communications, networking, management and applications brought together. In a statement the companies said they remained committed to open industry standards, such as SIP, XML and CSTA, and the merger would enable the accelerated introduction of new and innovative business solutions.

"By bringing together the unique strengths of each company, this transaction accelerates our growth strategy," said Mitel chief executive Don Smith. "We believe the merger will deliver value to customers, channel partners, employees and shareholders while making us the clear choice for new clients."

The combined company, including Inter-Tel international subsidiaries such as Inter-Tel Europe, Swan Solutions and Lake Communications will have market coverage in over 90 countries and customers in industries such as finance, healthcare, hospitality, retail, government and education.

Smith said that the merger would result in Mitel withdrawing from the IPO registration process in the short term

The boards of directors of both companies have approved the transaction and it is expected to close in the third quarter of 2007. The transaction is being funded by a combination of equity and debt.

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