Mitel has been an innovator and forward-thinker; Aastra’s specialty was acquiring companies that had seen better days.
In the communications world, Monday could have been boring, with many North American companies taking today off to remember our War Veterans and the ones who gave their lives so we could have the freedom to do what we wanted–Veteran’s Day in the U.S. or Remembrance Day to all of my Canadian friends and family. However, the day did start with a bit of news as Kanata, Ontario-based Mitel acquired fellow Canadian company, Aastra for a cool $374 million, which is about an 18% premium based on where the stock was prior to the acquisition. Eric Krapf, as he usually does, gave us a great summary of news so I won’t go into the specifics since he’s covered that already.
On paper, this acquisition certainly makes sense, as the market is dominated by companies much larger than either Mitel or Aastra. Take Cisco and Microsoft out of the mix and there’s still Avaya, Alcatel-Lucent, Unify (formerly Siemens Enterprise), NEC, and the list goes on and on. The combination of Mitel and Aastra creates a much bigger company that’s financially stronger and able to go toe to toe with some of the bigger boys.