Mitel, Aastra Close Merger

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**Editor's Note: Please click here for a recap of the biggest channel-impacting mergers in Q4 2013.**

Mitel and Aastra on Friday made good on predictions that their $374 million merger would close at the end of January.

Earlier this week, the companies provided an update noting that the deal would be completed on Jan. 31.

The combined firms now go by the Mitel name, boasting top market share in Western Europe and combined annual revenue of more than $1 billion. Plus, "We now have double the talent, tools and range of solutions to aggressively compete for a greater share of our market," Richard McBee, president and CEO of Mitel, said in a prepared statement.

In addition to closing the merger on Friday, Mitel announced it finished financing a $405 million credit facility that features a $355 million term loan, maturing in January 2020, and an undrawn $50 million revolving credit facility maturing in January 2019.

"Our new capital structure, combined with the enhanced cash flow generation we expect from the merger, positions Mitel with one of the best financial platforms in the industry," said CFO Steve Spooner.

Mitel used the proceeds from the new loans to finance the Aastra merger, repay $259 million and cover the transaction's fees and expenses. The company expects to save about $50 million within less than three years by optimizing its supply chain, consolidating facilities and by reducing costs while increasing production. Mitel further expects to use its cash flow to repay debt and "aggressively pursue growth opportunities."

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