UPDATE 2-Mitel Networks to buy Aastra for C$392 mln to expand in Europe

Mon Nov 11, 2013 1:16pm EST
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* Deal for C$392 mln

* To pay C$31.96 per Aastra share, a 13 pct premium to Aastra's Friday close

* Aastra shares rise as much as 18 pct

* Aastra to nominate three new members to Mitel's board

By Narottam Medhora

Nov 11 (Reuters) - Mitel Networks Corp , a provider of internet phone and video-conferencing services, said it would buy smaller rival Aastra Technologies Ltd for C$392 million ($374 million) to expand in Europe.

Mitel's offer of $6.52 in cash plus 3.6 of its shares per Aastra share values Aastra at C$31.96 per share -- a premium of 13 percent to the stock's Friday close.

Aastra's shares were up 12 percent at C$31.75 in afternoon trade on Monday. They rose as much as 18 percent to C$33.32 earlier in the session.

The deal will double Mitel's revenue, giving the combined company revenue of about $1.1 billion, with 54 percent coming from Europe, Middle East and Africa, according to a presentation posted on Mitel's website.   Continued...