Big news in the communications space today is that Mitel Networks Corporation, a provider of integrated communications solutions, and enterprise communications company Aastra Technologies has agreed to a merger. The resulting combined company will have a global customer base of 60 million end users, the top market share in Western Europe, and one of the largest footprints in the industry.
This news comes mere months after Mitel posted a net loss of $3.8 million for its first financial quarter ended July 31, down from a net loss of $2.1 million for the same period in 2012. As such, its merger with Aastra comes at an ideal time for Mitel. Indeed, the company’s CEO, Richard McBee seems to feel that consolidation is the best course of action not only for Mitel, but for other companies in the space as well.
"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," said McBee in a statement. "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."
Following the merger, McBee will retain his position as CEO, while Mitel chief financial officer Steve Spooner will also retain his current role. Aastra’s co-CEOs, Francis Shen and Tony Shen, will assume the positions of chief strategy officer and chief operating officer, respectively.
The Mitel board of directors will also increase from eight to nine directors, while two of Mitel’s current board members will step down. Aastra will then be able to appoint three new board nominees to fill the vacancies.