Aastra Technologies to Acquire Ericsson's Enterprise Communication
Business
STOCKHOLM, SWEDEN--(Marketwire - February 18, 2008) - Aastra
Technologies Limited (TSX: AAH) is pleased to announce that it has
entered into an agreement with Ericsson (NASDAQ: ERIC) 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 Tetrault LLP is acting as
Aastra's legal advisors.
A conference call is scheduled for 8:30 am EST, Tuesday, February 19,
2008. Those wishing to participate in the teleconference are asked to
call toll-free 1-888-789-9572, or locally 416-695-7806 with passcode
3252789. A replay will be available approximately one hour after the
conference call by dialing toll-free 1-800-408-3053 or local
416-695-5800 with passcode 3252789. This replay service will be
available for 48 hours.
About Aastra
Aastra Technologies Limited, is a global company at the forefront of
the Enterprise Communication market. Headquartered in Concord,
Ontario, Canada, Aastra develops and delivers innovative and
integrated solutions that address the communication needs of
businesses small and large around the world. Aastra enables
Enterprises to communicate and collaborate more efficiently and
effectively by offering customers a full range of open standard
IP-based and traditional communications networking products,
including terminals, systems, and applications. For additional
information on Aastra, visit our website at http://www.aastra.com.
"Aastra" is a registered trademark of Aastra Technologies Limited.
About Ericsson:
Ericsson is the world's leading provider of technology and services
to telecom operators. The market leader in 2G and 3G mobile
technologies, Ericsson supplies communications services and manages
networks that serve more than 185 million subscribers. The company's
portfolio comprises mobile and fixed network infrastructure, and
broadband and multimedia solutions for operators, enterprises and
developers. The Sony Ericsson joint venture provides consumers with
feature-rich personal mobile devices. Ericsson is advancing its
vision of 'communication for all' through innovation, technology, and
sustainable business solutions. Working in 175 countries, more than
70,000 employees generated revenue of USD$27.9 billion (SEK189
billion) in 2007. Founded in 1876 and headquartered in Stockholm,
Sweden, Ericsson is listed on the Stockholm, London and NASDAQ stock
exchanges. For more information, visit www.ericsson.com or
www.ericsson.mobi.
This press release contains forward-looking information or
forward-looking statements within the meaning of applicable
securities legislation ("forward-looking statements"). Any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions,
potentials, future events or performance (often, but not always,
using words or phrases such as "believes", "expects" or "does not
expect", "is expected", "anticipates" or "does not anticipate", or
"intends" or stating that certain actions, events or results "may",
"could", "would", "might" or "will" be taken or achieved) are not
statements of historical fact, but are forward-looking statements.
Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of Aastra, or developments in Aastra's
business or in its industry, to differ materially from the
anticipated results, performance, achievements or developments
expressed or implied by such forward-looking statements. Please refer
to the heading "Risk Factors" in our annual information form filed on
www.sedar.com, for the material factors that could cause our actual
results to differ materially from the forward-looking statements made
today. It is important to note that: unless otherwise indicated,
forward-looking statements in this press release describe Aastra's
expectations as of the date of this press release; Aastra cautions
readers not to place undue reliance on the forward-looking statements
in this press release as actual results may differ materially from
expectations if known and unknown risks or uncertainties affect
Aastra's business, or if estimates or assumptions prove inaccurate.
Therefore, Aastra cannot provide any assurance that forward-looking
statements will materialize and Aastra assumes no obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or other reason.
Contacts:
Aastra Technologies Limited
Allan Brett
CFO
(905) 760-4160
Email: investors@aastra.com
Ericsson
Media Relations
+46 8 719 69 92
Email: press.relations@ericsson.com
Ericsson
Investor Relations
+46 8 719 00 00
Email: investor.relations@ericsson.com