Inter-Tel Inc. stockholders on Thursday approved the $723 million merger with Mitel Networks Corp.

The company said early results indicate that 60 percent of its outstanding shares voted in favor of the transaction.

We are pleased that Inter-Tel stockholders agreed with us that the Mitel merger represents the greatest value currently available to Inter-Tel stockholders and is in their best interests, said Alexander L. Cappello, Inter-Tel’s chairman.

The merger was announced April 26 and Mitel said it would acquire Inter-Tel for $25.60 per share in cash. The companies have agreed not to complete the merger until after an Aug. 8 hearing on a motion from a shareholder lawsuit seeking a preliminary injunction of the merger.

The deal gives Canada-based Mitel a stronger presence in the U.S. market and doubles its current revenue stream to combined $800 million. Both companies are privately held. Mitel has withdrawn its registration for an initial public offering pending the outcome of the transaction.

The companies have said the merger will allow them to extend their reaches with SMBs and expand into the large-business IP communications market. The combined company, including Inter-Tel international subsidiaries, such as Inter-Tel Europe, Swan Solutions and Lake Communications, will have operations in more than 90 countries.

Inter-Tel Inc. www.inter-tel.com
Mitel Networks Corp. www.mitel.com