With Recent ShoreTel Merger Agreement, Mitel’s Future Looks Golden

Mitel’s recent merger agreement with ShoreTel is paving a path to accelerated growth for Mitel, putting the Com giant in second place in the UCaaS space. Twinstate Technologies®, a Mitel partner, weighs in.

On July 27th, Mitel (Nasdaq:MITL) (TSX:MNW) and ShoreTel (Nasdaq:SHOR) announced that they entered into a definitive merger agreement pursuant to which Mitel will acquire 100% of the outstanding shares of ShoreTel common stock. If all goes as planned, the strategic move (accompanied by a $430 million price tag) will place Mitel in the number two position in the Unified Communications as a Service (UCaaS) market.

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“This is a very natural combination that enables us to continue to consolidate the industry and take advantage of cost synergy opportunities while adding new technologies and significant cloud growth to our business,” said Mitel CEO, Rich McBee, in a statement.

“As Mitel continues to expand its portfolio, it’s a tremendous advantage for our Mitel customers,” said Jim Tynan, Vice President of Sales for Twinstate Technologies®. “We have already seen significant advancement in applications for our customers based on acquisitions Mitel has made in the past few years. The recent release of the Mitel 6900 series of phones was a direct result of the Aastra acquisition. I would expect to see Mitel integrate the best of ShoreTel’s products into their portfolio, most likely on the cloud side.”

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According to a CRN article, the UCaaS market is expected to grow 11% annually through 2020. Named as a Leader four years in a row in the Gartner Magic Quadrant Report for Unified Communications, Mitel has significant growth opportunity in UCaaS through the consolidation and more than doubles its UCaaS revenue to $263 million.

“Customers are clearly moving to the cloud at a rapid pace. The combination of Mitel and ShoreTel creates a new UCaaS market leader with a differentiated strategy and solution, and a clear migration path so that no customer is left behind or will have to abandon what they already have to cloud-enable their organization, said Don Joos, CEO of ShoreTel, in a statement.”

There is a wealth of hosted solutions that didn’t exist four to five years ago. The merging brings with it a tremendous shift in the market, for it whittles it down to a handful of manufacturers at most. Once the acquisition is finalized, Mitel partners like Twinstate will be uniquely positioned to offer its customers even more cloud-based solutions.

Working only with best-in-breed technology partners, Twinstate has been a Mitel partner for more than 40 years. We are experts in Unified Communications and will guide you on choosing the right hosted solutions for your business needs.