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Aastra Technologies to Acquire Ericsson's Enterprise Communication Business
(Market Wire Via Thomson Dialog NewsEdge) STOCKHOLM, SWEDEN, February 18 / MARKET WIRE/ --
Aastra Technologies Limited (TSX: AAH) is pleased to announce that it has entered into an agreement with Ericsson (NASDAQ: ERIC) to acquire Ericsson's Enterprise Communications Business. The acquisition is subject to customary closing conditions and is expected to close in April 2008. The purchase price is SEK650 million (CAD$103 million) for intangible assets subject to customary adjustments for net tangible assets as at closing. Aastra believes that the acquired business, under its management, will require net working capital of CAD$57 million resulting in a total investment by Aastra of approximately CAD$160 million.
With its headquarters in Stockholm, Sweden, the business is a leading provider of IP PBX, converged PBX systems and branch office solutions. The product portfolio includes communications solutions for enterprises of all sizes, mobility solutions, telephone terminals and services. With approximately 630 employees located in over 30 countries, the business generated revenue of approximately SEK3 billion (approximately CAD$460 million) in its last fiscal year ended December 2007.
As the enterprise communication market continues its evolution to VoIP, Aastra believes the acquisition of Ericsson's Enterprise Communication Business will provide it with the increased scale to be a leading player in Western Europe while creating an important footprint for Aastra in a number of key markets across Eastern Europe, Asia, Australia, the Middle East, Africa and South America.
TD Securities Inc. based in Toronto, Canada and Medici Corporate ASA based in Oslo, Norway are acting as Aastra's financial advisors with respect to this transaction while McCarthy Tetrault LLP is acting as Aastra's legal advisors.
A conference call is scheduled for 8:30 am EST, Tuesday, February 19, 2008. Those wishing to participate in the teleconference are asked to call toll-free 1-888-789-9572, or locally 416-695-7806 with passcode 3252789. A replay will be available approximately one hour after the conference call by dialing toll-free 1-800-408-3053 or local 416-695-5800 with passcode 3252789. This replay service will be available for 48 hours.
About Aastra
Aastra Technologies Limited, is a global company at the forefront of the Enterprise Communication market. Headquartered in Concord, Ontario, Canada, Aastra develops and delivers innovative and integrated solutions that address the communication needs of businesses small and large around the world. Aastra enables Enterprises to communicate and collaborate more efficiently and effectively by offering customers a full range of open standard IP-based and traditional communications networking products, including terminals, systems, and applications. For additional information on Aastra, visit our website at http://www.aastra.com. "Aastra" is a registered trademark of Aastra Technologies Limited.
About Ericsson:
Ericsson is the world's leading provider of technology and services to telecom operators. The market leader in 2G and 3G mobile technologies, Ericsson supplies communications services and manages networks that serve more than 185 million subscribers. The company's portfolio comprises mobile and fixed network infrastructure, and broadband and multimedia solutions for operators, enterprises and developers. The Sony Ericsson joint venture provides consumers with feature-rich personal mobile devices. Ericsson is advancing its vision of 'communication for all' through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 70,000 employees generated revenue of USD$27.9 billion (SEK189 billion) in 2007. Founded in 1876 and headquartered in Stockholm, Sweden, Ericsson is listed on the Stockholm, London and NASDAQ stock exchanges. For more information, visit www.ericsson.com or www.ericsson.mobi.
This press release contains forward-looking information or forward-looking statements within the meaning of applicable securities legislation ("forward-looking statements"). Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, potentials, future events or performance (often, but not always, using words or phrases such as "believes", "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", or "intends" or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken or achieved) are not statements of historical fact, but are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Aastra, or developments in Aastra's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Please refer to the heading "Risk Factors" in our annual information form filed on www.sedar.com, for the material factors that could cause our actual results to differ materially from the forward-looking statements made today. It is important to note that: unless otherwise indicated, forward-looking statements in this press release describe Aastra's expectations as of the date of this press release; Aastra cautions readers not to place undue reliance on the forward-looking statements in this press release as actual results may differ materially from expectations if known and unknown risks or uncertainties affect Aastra's business, or if estimates or assumptions prove inaccurate. Therefore, Aastra cannot provide any assurance that forward-looking statements will materialize and Aastra assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or other reason.
Contacts:
Aastra Technologies Limited
Allan Brett
CFO
(905) 760-4160
Email: investors@aastra.com
Ericsson
Media Relations
+46 8 719 69 92
Email: press.relations@ericsson.com
Ericsson
Investor Relations
+46 8 719 00 00
Email: investor.relations@ericsson.com
Copyright ? 2008 Market Wire, Incorporated
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