IP Telephony

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Inter-Tel (News - Alert) today announced that the Delaware Court of Chancery has denied a shareholder motion to enjoin the acquisition of Inter-Tel by Mitel Networks Corporation. As a result of the Court’s decision, Inter-Tel and Mitel (News - Alert) are free to move ahead with the merger. The expected close of the transaction is scheduled for tomorrow, August 16, 2007.

 

Needless to say, Inter-Tel’s Chairman, Alexander L. Cappello is happy with the decision.

 

“We are very pleased that the Court has ruled in our favor. We continue to believe that the Mitel merger is in the best interests of Inter-Tel stockholders and look forward to closing the merger with Mitel.”

 

The shareholder group’s motion to prevent the merger was the final apparent hurdle standing in the way of Ottawa, Canada-based Mitel acquiring Arizona-based Inter-Tel.

 

Originally announced in April, the merger has faced challenge after challenge en route to tomorrow’s expected close. Counter-offers from Vector Capital, which were eventually pulled; founder and former CEO Steven Mihaylo’s fight to prevent the merger, complete with a recapitalization plan; two postponements of the final shareholder vote, and so on and so forth. Needless to say there was never a dull moment this summer as far as Inter-Tel and Mitel were concerned.

 

Quoted in the Ottawa Business Journal earlier this week, Toronto-based analyst Jon Arnold believes that once finalized, the merger will make Mitel a force to be reckoned with in the enterprise phone system market.

 

“It’s clear,” said Arnold, “they’ve (done) this market share play that makes them the number one vendor. They can keep pace with Cisco (News - Alert) and Avaya.”

 

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