NEW YORK (AP) -- Mitel Networks is buying rival Aastra Technologies Ltd. in a cash-and-stock deal valued at 392 million Canadian dollars ($374 million).
Software and services provider Mitel will acquire Aastra's outstanding stock for $6.52 in cash plus 3.6 Mitel shares per each Aastra share. Each Aastra share is valued at 31.96 Canadian dollars ($30.49).
Aastra shareholders will own about 43% of the combined company.
Both boards unanimously approved the deal. The board of the combined company will increase from eight directors to nine. Two existing Mitel board members will step down. Aastra will be allowed to appoint three new board nominees.
The combined company will be based in Ottawa, Canada under the Mitel Networks Corp. name. Mitel President and CEO Richard McBee will head the combined company. Aastra co-CEO Francis Shen will become chief strategy officer and co-CEO Tony Shen will become chief operating officer.
The deal needs the approval of at least 66 2/3 percent of votes cast by Aastra shareholders. A special shareholders meeting is expected to take place in January. The transaction also requires approval of Mitel stockholders by majority vote. Because Francisco Partners and Terry Matthews -- who control about 63% of Mitel's shares -- have signed voting support agreements in favor of the deal, Mitel anticipates that will be enough evidence of shareholder approval and it won't have to hold a shareholder meeting.
The transaction is also subject to compliance with Canadian regulations.