It has had quite an eventful past few months, including its offer to purchase Canadian rival Aastra Technologies (TSX:AAH). The $392 million deal, announced back in November, has finally been approved by Aastra shareholders by a 99% vote on January 9, 2014.
This acquisition will give Mitel a major boost in European markets and a huge advantage when it comes to research and development. It will also cement its position in the Canadian market and strengthen it against competitors such as Cisco.
Bonus: Aastra buys Telepo
Just before the closing of the merger, Aastra purchased Swedish communication software provider Telepro for an undisclosed amount. Telepro has grown over the past few years to 90,000 active users spread over 16 European service providers, including Sweden’s two largest providers.
Telepro will fit very nicely into Aastra’s more European-focused portfolio and acts as a nice bonus to new corporate owner Mitel.
Mitel has also come to an agreement with Sasktel to provide its “MiVoice Office” platform across the province. MiVoice Office is described as an “out-of-the-box communications platform” and is designed for companies ranging from 2 to 250 employees. This is a major opportunity for Mitel to pick up a bunch of clients very quickly, because 98% of Saskatchewan companies have 50 employees or less.
#1 in market share
Before the Aastra deal was completed, Mitel claimed the top spot in market share in Canada, according to independent analyst firm MZA Ltd. This came about in the third quarter of 2013 when it claimed 33% of the IP extensions market in Canada.
Foolish bottom line
Since the November merger announcement, Mitel and Aastra shares have surged to 52-week highs and have held their ground.
The combination of these two companies creates a major player in the communications sector, and the new entity can boast the highest market share in Canada, the UK and Western Europe.
It looks like good things are in store for Mitel and investors should continue to profit from the growing cloud provider.
Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.
Fool contributor Cameron Conway does not own any shares in the companies mentioned.