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Mitel, a provider of cloud and premises-based UC software solutions, and Aastra (News - Alert) Technologies, a provider of solutions for enterprise communications, reached an unanimous agreement, approved by both companies’ board of directors, to merge. Under the arrangement, Mitel (News - Alert) is scheduled to acquire all of the outstanding Aastra common shares for $6.52 in cash plus 3.6 Mitel common shares per each Aastra common share.

Richard McBee, president and chief executive officer at Mitel, remarked, “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. 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.”

Aastra is focused on enterprise communications and its portfolio of services range from UC applications, integrated mobility software, and multimedia call center solutions to high definition video communications, deskphones, and cordless terminals.

Mitel, when combined with Aastra, will emerge as a billion dollar company, with one of the largest global footprints in the industry, and will be strategically well placed to reap the benefits as the $18 billion business communications market migrates to software-based cloud services.

McBee will head the new merged enterprise, with Steve Spooner (News - Alert) as the chief financial officer.  Meanwhile, the role of chief strategy officer will be given to Aastra’s Francis, and Shen Tony Shen will be placed as the chief operating officer. This will give Mitel nine directors on its board, with Aastra having the right to appoint three board nominees.

Aastra said that it is confident that this merger will create value for its shareholders, customers, partners and employees.