Ottawa-based telecom equipment maker Mitel Networks Corp. is acquiring Tempe AZ-based Inter-Tel Inc., another telecom gear supplier, for US$723 million. The combined company, which includes Inter-Tel subsidiaries Inter-Tel Europe, CTI system provider Swan Solutions Ltd. in West Sussex UK, and small office/ home office (SOHO) equipment seller Lake Communications Ltd. in Ireland, anticipates revenues of over US$800 million – double Mitel's current take, according to an April 26 press release. The merger lets the new-formed firm extend its small and mid-sized business (SMB) portfolio, and expand further into the enterprise space. The deal is expected to close in the third quarter of 2007. Often considered an SMB-focused supplier, Mitel has been trying to improve its enterprise penetration. But lately enterprise-focused rivals such as Cisco Systems Inc. and Nortel Networks have begun a serious push into the SMB arena.

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