Mitel has announced its decision to acquire Mavenir

Mitel is a renowned name in business communications and they are all set to expand their market. In the MWC they announced that they will merge wih Mavenir Systems which is a leader in creating software based networking solutions for mobile carriers. This acquisition will expand Mitel’s market by nearly $14 Billion by the year 2018. Mitel will acquire the Mavenir stocks at a price $560 million. The current stockholders of Mavenir will be given the option to choose either all-cash or all-stock consideration for each share of Mavenir common stock that they own.in either case the exchange offer will be subject to proration with a value of $11.08 plus 0.675 of a Mitel common share, or $17.94 based on the closing price of a Mitel common share on February 27, 2015.

Mobile carriers globally are transitioning to all-IP 4G mobile, which opens up the path to delivering high quality voice services with more efficiency. It also provides opportunity to set up new communication services and bring in more sources of revenue for carriers. 

Mavenir has a very established market; they have 130 mobile carriers worldwide, as their customers. They excel in providing 4G LTE mobile solutions and they have pioneered many of the industry firsts which in turn has shaped the 4G LE sector. The merge with Mitel will give Mavenir the necessary financial and customer base to develop new innovative mobile solutions. After the merge, Mavenir will be headed by Pradeep Kohli as President and will be the mobile business division of Mitel.

“The move to all-IP LTE mobile networks has created a unique opportunity for service providers to leverage a converged all-IP network to offer feature-rich business and consumer communication services to any device, anywhere, on any access network,” said Pardeep Kohli, President and CEO, of Mavenir. “We believe that the combined company is ideally positioned to capitalize on the trends within the communications industry today; namely, the convergence across enterprise and mobile networks to all-IP technologies, and the transition to cloud-based unified communications telephony and software-defined virtualized infrastructure.”