Two weeks after Inter-Tel Inc. stockholders approved a merger with Mitel Networks Corps., the companies have sealed the $723 million deal.

Mitel said on Thursday it now is the top IP unified communications provider for enterprises and SMBs in North America and the second-largest in the Western European IP PBX market.

As we come together we will deliver innovative solutions and managed services for our existing customers and channel partners, so that no one is stranded or forced to consider an alternate vendor. We intend to be the logical choice for both existing and new customers, said CEO Don Smith.

Mitel is based in Ottawa; Inter-Tel is headquartered in Tempe, Ariz. The new Mitel now claims 3,500 employees and 1,500 VARs, distributors and systems integrators.

The merger was announced April 26 when Mitel said it would acquire Inter-Tel for $25.60 per share in cash. The deal gives Mitel a stronger presence in the U.S. market and doubles its current revenue stream to a combined $800 million. Both companies are privately held. Mitel withdrew its registration for an initial public offering pending the outcome of the transaction. Inter-Tel stopped trading its common stock on the Nasdaq as of yesterday.

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