Good or Bad? We Explain our Take in this Mitel Minute Update!
Today Mitel confirmed they will be entering an all-cash transaction acquisition, valued at 2 Billion dollars, by a private group of investors who are an affiliate of Searchlight Capital Partners.
This means once the acquisition is complete, Mitel will become a privately held company, no longer publicly traded.
As you may recall, when Mitel acquired ShoreTel we recognized the deal as a win-win. Even though Mitel was previously a competitor of ShoreTel, we saw the potential and we stood by that decision. You can read our original stance in our earlier news update here.
Is the Mitel Acquisition by Searchlight a Good Move?
The answer is quite simply, YES!
If you have any concerns as to, “Oh no, another corporate buyout…run for the hills, unwanted and awful disruptive is coming!” you can stop the worrying, here’s why.
First, this change is extremely strategic and well thought out. Searchlight knows the business, and this isn’t their first stroll around the telecom industry block. Keep in mind Searchlight is the 2nd investor behind the success of Rackspace and was also a bidder on the Broadsoft acquisition.
Second, by moving to a privately-owned company, they will be afforded greater flexibility to manage strategic direction and transition within existing and new markets, specifically the cloud and undoubtedly CPaaS. This investment will help strategically accelerate these goals.
To see this kind of financial investment in a company that is already the #2 UC global provider, speak volumes. They’ve got a vision, and the backing to see it through.
What this means for ShoreTel Users
It’s been clearly stated to us through our conversations with Mitel executives that the operational strategy and the team to execute “does not change”. This move benefits the customer and its partners that stand beside Mitel every day.
As a Platinum Partner, we support the news, we embrace the changes, and we are glad to share it with you directly.
For additional reading on this topic, you can also check out the following:
Mitel Official Press Release
CRN news article featuring CT-Pros President of Business Development, Joe Rittenhouse.
Mitel Minute Update: Mitel Keeps ShoreTel Connect Cloud as Flagship Product, Rebrands