By Lisa Kerner
Charlotte, N.C., April 26 - Mitel Networks Corp. agreed to acquire Inter-Tel Inc. for $25.60 per share in cash, or a total purchase price of $723 million.
The boards of directors of both companies have approved the transaction, which is expected to close in the third quarter of 2007.
A combination of equity, led by Francisco Partners, and debt funding via Morgan Stanley will finance the deal.
Genuity Capital Markets was the independent financial advisor to the board of Mitel, while UBS Investment Bank was the financial advisor to Inter-Tel.
"We believe that this transaction will deliver superior value to Inter-Tel's stockholders, and Mitel is the right partner to create additional growth opportunities for our employees and provide exceptional products and services to our customers for the long-term," Inter-Tel chairman of the board Alexander Cappello said in a company news release.
Mitel, based in Ottawa, Ont., provides unified communications solutions and services for business customers.
Tempe, Ariz.-based Inter-Tel specializes in applications using networks and server-based communications software.
| Acquirer: | Mitel Networks Corp.
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| Target: | Inter-Tel Inc.
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| Transaction total: | $723 million
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| Price per share: | $25.60 per share
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| Announcement date: | April 26
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| Expected closing: | Third quarter of 2007
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| Stock price for target: | Nasdaq: INTL: $23.96 on April 25
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