FOR IMMEDIATE RELEASE
Kanata, Ontario, Canada, August 8, 1997 - Mitel Corporation and Gandalf Technologies Inc. announced today that they have reached an agreement in which Mitel will acquire the assets of Gandalf's technology business, in particular the remote access business, for $14.9US million cash.
The acquired assets include Gandalf's leading edge remote access products and technology, which facilitate high volume data and voice communications between the corporate office, local branches, teleworkers and agents in the field in an extremely cost-effective manner. These products are currently sold worldwide as the XpressStack™, Xpressway™, XpressConnect™ and LANline lines of remote access devices. The technology acquisition also includes Gandalf's other product inventory. This agreement does not include Gandalf's services business.
With this transaction, Mitel will operate the business as a Gandalf-branded division of Mitel and employ a number of Gandalf employees in R&D, sales & marketing, current manufacturing and administrative support functions. Dr. John B. Millard, Mitel's President and C.E.O., said: "The acquisition of Gandalf's remote access business and technology is an excellent complement to our other initiatives in bringing telecommunications and computers together, and fits nicely with our recent purchase of the UK assets of Global Village Communications which occurred in January '97."
"Mitel's acquisition of Gandalf's technology business is very exciting for the market," added Richard Busto, President and C.E.O. for Gandalf. "Gandalf's strength in remote access, combined with Mitel's position in the telecommunications industry, brings powerful end-to-end solutions for networking customers. Gandalf's customers will continue to realize the benefits of Gandalf products in the future through Mitel, while continuing to receive the highest level of support from our existing services business."
Mitel Corporation (NYSE:MLT) (TSE:MLT) designs, manufactures and markets systems, sub-systems and microelectronic components for sale to world markets in the telephony, computer telephony integration (CTI) and communications industries. The Company's products include voice communications systems; networked voice and data systems and CTI applications; client/server telecom products; public switching systems; network enhancement and access products; custom silicon wafers, integrated and hybrid circuits, and optoelectronic devices. Mitel's leadership strategy is centered on advancing people-to-people communications in an open, distributed and standards-based environment.
Gandalf continues to pursue its restructuring plan, which includes its services and maintenance business and other assets of the Company. The services and maintenance business continues to provide support for customers in North America and internationally.
For further information please contact:
Mitel Corporation
613-592-2122