Aastra Technologies has announced that it has entered into an agreement with Ericsson 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 Tétrault LLP is acting as Aastra’s legal advisors.