Menu
Mitel drops ShoreTel bid

Mitel drops ShoreTel bid

ShoreTel customers don't have to worry about what Mitel would have done with the gear they've already bought.

Customers of ShoreTel phones and unified communications gear can stop worrying that their lives might get complicated by a merger between the company and its rival Mitel.

Mitel has taken a $US575 million offer for ShoreTel off the table stating the refusal of ShoreTel's board to talk about the offer.

+ More on Network World: 5 top-paying IT jobs for every stage of tech careers +

"The decision to terminate the proposal early was made in light of the repeated refusal of ShoreTel's Board of Directors to engage in discussions of any kind regarding a potential transaction," Mitel says in a press release. The offer represented more than 24% more than what ShoreTel's stock was worth.

If the offer had been accepted, Mitel would have become a formidable force in unified communications, says Jeremy Duke, CEO of Synergy Research Group. If the market for on-premises UC is combined with UC as a service, Cisco is No. 1 with 28.7%, Avaya is 2  with 13.8%, ShoreTel is 3 with 8.7% and Mitel is No. 4 with 7.1%. Post-merger, Mitel/ShoreTel would bump Avaya to No. 3.

The deal would also have improved Mitel's share of the U.S. market. It would have paralleled the company's acquisition of Aastra in January that put it at No. 1 in Western Europe, which also made Mitel a billion-dollar company.

Customers would have had to ponder what would happen to the companies' respective product lines after a purchase and whether gear they had bought would be discontinued.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags unified communicationsNetworkingvoiptelecommunicationAvayaShoretelSynergy

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.​

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments