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March 2 (Reuters) - Canadian telecom services provider Mitel Networks Corp said it would buy mobile networking software maker Mavenir Systems Inc for $560 million in cash and stock.
Mitel earlier tried to buy ShoreTel Inc but the smaller U.S. company rejected its raised bid of $574 million in November.
Buying Mavenir will help Mitel tap the Voice over Long-Term Evolution (VoLTE) market, which repackages voice calls as data and transmits them over carriers' high-speed data networks.
Mitel said it expects to benefit from the growing demand of 4G LTE and expand its total addressable market by about $14 billion by 2018.
Mavenir's stockholders will receive $11.08 and 0.675 Mitel share for every share they hold. The offer is valued at $17.94, based on Mitel's Friday close.
BofA Merrill Lynch is Mitel's financial adviser, while Paul, Weiss, Rifkind, Wharton & Garrison LLP and Osler, Hoskin & Harcourt LLP are its legal counsel.
White & Case LLP are legal counsel to BofA Merrill Lynch and Credit Suisse, the lead arrangers of financing.
Morgan Stanley is acting as financial advisor to Mavenir and Andrews Kurth LLP and Davis Polk & Wardwell LLP are its legal counsel. (Reporting by Sneha Banerjee in Bengaluru; Editing by Joyjeet Das)