Aastra Technologies

Aastra Technologies Limited was a Canadian telecommunications equipment manufacturer whose products connected residential, business, and institutional users to communications networks, including the Internet. The company was based in Concord, Ontario, and developed from an engineering consultancy into a supplier of enterprise telephony, network-access equipment, and digital communications hardware. Aastra was founded in Toronto in 1983, when Francis Shen and Hugh Scholaert acquired an engineering consulting company. Its early work served the defense industry. During the 1990s, the company moved toward telecommunications and began concentrating on communications equipment and systems. It became a publicly traded Canadian company in 1996, providing a platform for expansion through acquisitions. The company grew substantially by purchasing assets and business divisions from larger technology and telecommunications companies. In 2000, it acquired assets of Nortel Networks’ Access Solutions Division, including rights connected with manufacturing telephones under the Nortel name. In 2001, it acquired Lucent Technologies’ Digital Video business and Ericsson’s cable-modem business. Further expansion followed in 2002 through the acquisition of Nortel’s CVX and CSG Division and in 2003 through the purchase of the ASCOM PBX System Division. These transactions broadened Aastra beyond conventional telephones into enterprise private branch exchanges, network access, digital video, and related communications infrastructure. Aastra also pursued a stronger European position. In 2005, it acquired the Germany-based EADS Enterprise Telephony Business and the DeTeWe Telecommunication Systems business. Europe subsequently accounted for the large majority of the company’s sales, while the United States represented a smaller share and Canada a relatively limited portion. In 2008, Aastra acquired Ericsson’s enterprise PBX division, associated with the MD110 and MX-ONE telephony-switch platforms. This strengthened its presence in large-scale enterprise voice systems and made the company an important consolidator in the business-telephony sector. Its product portfolio included residential and business telephone terminals, screen telephones, enterprise PBX systems, network access terminals, cable-modem-related equipment, and digital video encoders, decoders, and gateways. Some residential telephone equipment was sold in the United States as Bell equipment through the Sonecor brand, which represented Southern New England Telecommunications. The company therefore operated across both end-user communications hardware and the infrastructure supporting enterprise and network services. Mitel Networks announced on November 11, 2013, that it would acquire Aastra in a transaction combining cash and Mitel shares. The announced transaction was valued at approximately 400 million Canadian dollars according to the cited reference material. Mitel completed the acquisition in January 2014. Aastra ceased to operate as an independent company, and its products, technologies, and operations were integrated into Mitel’s portfolio. Mitel subsequently provided information about the treatment of former Aastra products, while the Aastra corporate identity progressively disappeared from the market.

Aastra began in Toronto in 1983 when Francis Shen and Hugh Scholaert acquired an engineering consulting company. The business initially provided services to the defense industry. During the 1990s, it redirected its activities toward telecommunications and developed into a manufacturer and supplier of communications equipment. Aastra became publicly traded in Canada in 1996. The company’s subsequent growth relied heavily on acquisitions. In 2000, Aastra purchased assets from Nortel Networks’ Access Solutions Division, including rights associated with manufacturing telephones under the Nortel name. In 2001, it acquired Lucent Technologies’ Digital Video business and Ericsson’s cable-modem business. It expanded again in 2002 through the acquisition of Nortel’s CVX and CSG Division, followed in 2003 by the purchase of ASCOM’s PBX System Division. Aastra’s international enterprise-telephony presence increased significantly in 2005, when it acquired the Germany-based EADS Enterprise Telephony Business and DeTeWe Telecommunication Systems. The company’s sales were strongly concentrated in Europe at that time: Europe accounted for approximately three quarters of sales, while the United States and Canada represented much smaller proportions. In 2008, Aastra acquired Ericsson’s enterprise PBX division, whose products included the MD110 and MX-ONE telephony-switch platforms. Aastra’s product scope covered residential and business telephone terminals, screen telephones, enterprise PBX systems, network-access terminals, cable-modem-related equipment, and digital video encoders, decoders, and gateways. Its residential telephone products were also sold in the United States as Bell equipment through the Sonecor brand, representing Southern New England Telecommunications. On November 11, 2013, Mitel Networks announced an agreement to acquire Aastra in a transaction involving cash and Mitel shares. The transaction was described as having an approximate value of 400 million Canadian dollars. Mitel completed the acquisition in January 2014. After completion, Aastra no longer operated as an independent company. Its technology, products, and operations were incorporated into Mitel, and the Aastra brand subsequently ceased to have an independent market presence.

1. 2014Mitel completes the acquisition

   Mitel completed its acquisition of Aastra in January, ending Aastra’s independent corporate operation.

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2. 2013Mitel announces acquisition agreement

   Mitel Networks announced a proposed cash-and-stock acquisition of Aastra valued at approximately 400 million Canadian dollars.

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3. 2008Ericsson enterprise PBX division acquired

   Aastra acquired Ericsson’s enterprise PBX division, including business associated with the MD110 and MX-ONE telephony-switch platforms.

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4. 2005German enterprise-telephony businesses acquired

   Aastra acquired the EADS Enterprise Telephony Business and DeTeWe Telecommunication Systems business in Germany.

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5. 2003ASCOM PBX System Division acquired

   Aastra purchased the ASCOM PBX System Division, strengthening its enterprise private-branch-exchange business.

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6. 2002Nortel CVX and CSG Division acquired

   Aastra expanded its communications-infrastructure portfolio by acquiring Nortel’s CVX and CSG Division.

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7. 2001Digital video and cable-modem businesses added

   Aastra acquired Lucent Technologies’ Digital Video business and Ericsson’s cable-modem business.

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8. 2000Nortel Access Solutions assets acquired

   Aastra acquired assets of Nortel Networks’ Access Solutions Division and obtained rights connected with manufacturing telephones under the Nortel name.

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9. 1996Aastra goes public in Canada

   Aastra Technologies became a publicly traded Canadian company.

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10. 1993Aastra specializes in telecommunications

    The company began concentrating its activities on telecommunications rather than remaining primarily an engineering consultancy serving defense-related customers.

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11. 1983Aastra is founded in Toronto

    Francis Shen and Hugh Scholaert acquired an engineering consulting company and established the business that became Aastra. Its early activities served the defense industry.

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Aastra positioned itself as an international supplier of enterprise telephony, network-access hardware, and communications infrastructure, expanding its range and geographic reach primarily through acquisitions.

• Residential telephone terminalsConsumer telephony equipment

  Aastra produced residential telephone terminals for household users. In the United States, some residential equipment was sold as Bell equipment through the Sonecor brand, which represented Southern New England Telecommunications. These products formed the consumer-facing portion of Aastra’s otherwise strongly enterprise-oriented communications portfolio.

• Business telephone terminalsEnterprise telephony equipment

  Business telephone terminals were designed for office and institutional voice communications. They complemented Aastra’s PBX and enterprise communications systems and included conventional business handsets as well as more specialized screen telephones.

• Screen telephonesEnterprise telephony equipment

  Screen telephones combined voice communication with an integrated display, supporting enterprise users who needed information and call-management functions at the handset. They represented Aastra’s move beyond basic telephone terminals toward feature-rich business communications equipment.

• Enterprise PBX systemsEnterprise communications systems

  Aastra supplied private branch exchange systems for organizations requiring managed internal extensions, external calling, and enterprise voice services. Acquisitions from ASCOM, Nortel, and Ericsson helped make PBX and enterprise telephony a central part of the company’s portfolio.

• MD110 and MX-ONE-related telephony platformsEnterprise telephony switches2008

  Following its 2008 acquisition of Ericsson’s enterprise PBX division, Aastra became associated with the MD110 and MX-ONE enterprise telephony-switch businesses. These platforms served larger organizations and strengthened Aastra’s position in carrier-grade and enterprise voice communications.

• Network access terminalsNetwork access equipment

  Network access terminals formed part of Aastra’s broader equipment portfolio for connecting users and organizations to communications networks, including Internet-related access. The line reflected the company’s activity beyond end-user telephones and into network-facing hardware.

• Digital video encoders, decoders, and gatewaysDigital video communications equipment2001

  Aastra’s digital video business included encoders, decoders, and gateways for handling high-quality digital video signals. This capability came in part from the acquisition of Lucent Technologies’ Digital Video business in 2001.

• Cable modem equipmentBroadband access equipment2001

  Aastra added cable-modem capabilities through its 2001 acquisition of Ericsson’s cable-modem business. The product area extended the company’s reach into broadband network access and complemented its other network-connectivity equipment.

• 2013Agree to be acquired by MitelM&A

  Aastra operated as an international enterprise-communications equipment provider, while Mitel was also active in business communications and telephony.

  What changed. Mitel announced an agreement to acquire Aastra in a transaction consisting of cash and Mitel shares.

  Aftermath. The acquisition was completed in January 2014. Aastra ceased to operate independently and its products and technologies were integrated into Mitel.

  Announced transaction value. Approximately CAD 400 million (Announced November 11, 2013)

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• 2008Acquire Ericsson’s enterprise PBX divisionM&A

  Enterprise PBX and large-scale business telephony were central growth areas for Aastra.

  What changed. Aastra acquired Ericsson’s enterprise PBX division, associated with the MD110 and MX-ONE telephony-switch platforms.

  Aftermath. The acquisition strengthened Aastra’s enterprise voice portfolio and expanded its installed-base and platform capabilities.

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• 2005Increase European enterprise-telephony scaleM&A

  Aastra was pursuing international growth and a stronger position in the European enterprise communications market.

  What changed. It acquired the EADS Enterprise Telephony Business and DeTeWe Telecommunication Systems business in Germany.

  Aftermath. Europe became Aastra’s dominant sales region, accounting for about 75 percent of sales in 2005 according to the cited reference.

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• 2001Expand into digital video and cable-modem equipmentM&A

  Aastra was broadening its business beyond traditional telephone equipment into communications-network technologies.

  What changed. The company acquired Lucent Technologies’ Digital Video business and Ericsson’s cable-modem business.

  Aftermath. Aastra gained digital video and broadband-access capabilities alongside its telephony operations.

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• 2000Acquire Nortel Access Solutions assetsM&A

  Aastra sought to broaden its telecommunications portfolio and obtain additional manufacturing and product rights.

  What changed. Aastra acquired assets of Nortel Networks’ Access Solutions Division, including rights to manufacture telephones under the Nortel name.

  Aftermath. The transaction expanded Aastra’s network-access and telephone-equipment activities.

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• 1993Shift from engineering services to telecommunicationsStrategy

  Aastra had originated as an engineering consultancy with defense-industry work. By 1993, management had begun specializing the company in telecommunications.

  What changed. The company redirected its business toward telecommunications equipment and systems.

  Aftermath. This strategic change established the market focus that shaped Aastra’s later product development and acquisition program.

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• 2014Mitel completes acquisition of Aastra

  Mitel completed its acquisition of Aastra in January 2014. Aastra’s operations and product portfolio were subsequently integrated into Mitel.

  M&A
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• 2013Mitel announces acquisition of Aastra Technologies

  Mitel Networks announced on November 11, 2013, that it planned to acquire Aastra in a cash-and-stock transaction valued at approximately 400 million Canadian dollars.

  M&A
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• 2008Aastra acquires Ericsson’s enterprise PBX division

  Aastra acquired Ericsson’s enterprise PBX division, associated with the MD110 and MX-ONE telephony-switch platforms.

  M&AProduct generation
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• 2005Aastra strengthens its European enterprise-telephony business

  The company purchased the EADS Enterprise Telephony Business and DeTeWe Telecommunication Systems business in Germany. Europe accounted for most of Aastra’s sales during that period.

  M&A
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• 2000Aastra expands through Nortel, Lucent, and Ericsson-related acquisitions

  Aastra acquired several telecommunications assets and divisions, broadening its portfolio from telephones into network access, digital video, cable modem, and enterprise communications products.

  M&A
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• 1996Aastra becomes publicly traded in Canada

  Aastra Technologies went public in Canada, supporting its subsequent acquisition-led expansion in telecommunications equipment.

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1. Aastra Technologies