Mitel acquires Inter-Tel in $723 million merger

By Lisa Kerner

Charlotte, N.C. Aug. 16 - The merger of Mitel Networks Corp. and Inter-Tel (Delaware), Inc. is complete, the companies announced on Thursday, making Inter-Tel a wholly owned subsidiary of Mitel.

Mitel will maintain Inter-Tel's Tempe, Ariz., headquarters, which will become the center of operations for the combined U.S. business. Inter-Tel common stock was no longer listed on the Nasdaq Stock Market as of Thursday.

On April 26, Mitel agreed to acquire Inter-Tel for $25.60 per share, or a total purchase price of approximately $723 million.

"We are extremely pleased to complete this transaction today, which we believe is in the best interests of Inter-Tel stockholders," Inter-Tel chief executive officer Norman Stout said in a company news release.

"Our new company will be a formidable industry player in the United States and across the globe, and as part of the Mitel team, we look forward to continuing to provide exceptional products and services to our mutually expanded customer base."

The closing comes after a tumultuous few weeks including a recapitalization plan put forth by Inter-Tel founder and former chief executive officer Steven G. Mihaylo, a withdrawn offer by Vector Capital Corp. and litigation in the Delaware court.

Inter-Tel specializes in applications using networks and server-based communications software. Mitel, based in Ottawa, provides unified communications solutions and services for business customers.

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