The Making of a Billion Dollar Company: Mitel and Aastra Announce Plan to Merge
We got some exciting news today and just can’t wait to share it! Mitel Networks Corporation and Aastra Technologies Limited announced this morning their plans to merge, dependent on board approval by both companies, which is expected in early 2014.
The merger will create a billon dollar company with a larger global reach than either company had before and the technology and scale to migrate global customers to cloud-based solutions. It will also provide channel partners and customers access to a broad portfolio that supports businesses of any size, from SMB to enterprise.
Headquarters of the combined company will reside in Ottawa, Canada, and operate under the Mitel name, with the executive management led by current Mitel President and CEO Rich McBee. Aastra’s Co-CEOs will assume positions on the executive team: Francis Shen as Chief Strategy Officer and Tony Shen as Chief Operating Officer.
Once the merger is complete, the combined company will boast:
- $1.1 billion total revenue
- $100 million cloud business
- A global customer base of 60 million end users
- No. 1 market share in Western Europe
- A competitive solutions portfolio to address businesses of any size
"The business communications market is ripe for consolidation and on the cusp of a mass migration to cloud-based services. We believe that small competitors with narrow focus and limited global reach will quickly be marginalized," McBee says. "Aastra's solid financial structure, complementary portfolios, geographic reach and large installed-base immediately augment and expand Mitel's market footprint, enabling us to capitalize on a unique opportunity to leap-frog the competition and lead the market."
Francis agrees. "We are stronger together, and combined we will be a major global player,” he says. “We are confident that this merger will create value for our shareholders, customers, partners and employees.”