IP communications company, Mitel Networks, plans to acquire Inter-Tel for $US732 million.
While Mitel served business customers of all sizes, the deal would create a company better positioned to target the growing demand for Internet Protocol (IP) communications products in the small and medium-size business sector, the companies said.
The move means that Mitel would shelve its initial public offering (IPO) because the combination would help it achieve the next step in its growth plans, Mitel said.
The combined private company will support the Mitel and Inter-Tel brands and should bring in about $US800 million in annual revenue, twice that of the current Mitel.
Mitel designs, markets and sells a range of communications products including PBX systems, IP integrated communications products, network management software and telephones. Inter-Tel sells an array of similar products, also to large, medium-size and small businesses, including VoIP platforms, managed communications services and converged IP PBX products.
The boards of both companies have approved the deal, but Inter-Tel stockholders and regulatory groups must also approve it. The companies expect the transaction to close in the third quarter.