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Mitel to Go Private, Adds Flexibility to Accelerate UCaaS Strategy

By Travis Dillard, President & CEO

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This week Mitel announced they are being acquired by investor group Searchlight Capital Partners for $2B. Once this transaction completes (estimated to be second half of 2018) Mitel will be a privately held company. This of course following only 8 months after Mitel acquired ShoreTel so it has been a busy past year!
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We sat down with Mitel’s leadership to get more details around the changes and how it affects the heritage ShoreTel technology and customers. Here are the highlights:

• It is a change in ownership but the leadership team remains in place
• Going private relieves the pressure of short-term earnings performance so Mitel can continue to make long-term investments
• The primary reason for this transaction is flexibility: Mitel can grow their cloud strategy while maintaining their strong onsite presence and existing product strategy
• The heritage ShoreTel technology remains a strategic part of the platform – no end of life plans for the ShoreTel technology

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Why is Mitel focusing so heavily on cloud? Will this affect my onsite system?

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Mitel said they do not foresee the onsite business going anywhere for at least the next 10 years. What they want is to offer customers any service that fits their needs – whether that be cloud, onsite or hybrid. What they DO foresee, is a lot of potential for growth in the hybrid model – where customers can mix and choose onsite and cloud services and applications for their unified communications and contact center technologies. Many companies seem to lean that direction, and Mitel wants to have the best product offerings available for customers and continue to lead the UC market.
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What does this mean for you?

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Not much really. This is merely a change in ownership and ultimately has no effect on any Mitel/ShoreTel customer agreements or product lines. Business will continue as usual. Mitel has emphasized that ShoreTel is now fully integrated into their portfolio (it has been fully rebranded as MiVoice Connect for the onsite product and MiConnect Cloud for cloud). The heritage ShoreTel cloud plays well with their UCaaS strategy of growth. Mitel is heavily investing in the UCaaS space as that is where the market opportunity is growing, and both of the recent acquisitions play a huge part in that. As we said before with the Mitel-ShoreTel acquisition, the continual changes in the industry illustrate the importance of having a partner who is keeping you up to date, optimizing what you have today and helping you have a true unified communications strategy.
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Stay in touch for more updates and as we get more details to share.

For the official press release, click here
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Have more questions?

We’re always happy to talk
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