Mitel is famous for buying companies in it’s realm of communications technology, AKA telecom or unified communications. Many times, the target companies are distressed or struggling as we saw earlier this year with the recent purchase of Toshiba’s US telephone system business. Therefore Mitel can get a good price in the acquisition and ramp up it’s operations and market share.
On July 27, 2017 Mitel announced that it was purchasing ShoreTel Inc. ShoreTel is a California -based PBX manufacturer that has been quite successful in North American and had success in English speaking markets such as the United Kingdom and Australia. AINEO Networks brought ShoreTel to North Asia in 2006 and has been the leading distributor of ShoreTel over the last 10 years in Asia.
As an English-speaking nation neighboring Asia, ShoreTel has done quite well in ANZ (Australia New Zealand) recently releasing it’s cloud offering, ShoreTel Connect Cloud in the land down under. The cloud offering is not available in most countries, but with the ShoreTel acquisition, Mitel gets an aggressive dealer network and a great client base.
A History Of Consolidation
The move is billed as a merger by some sources but based on history, it is clearly a purchase. Mitel is no stranger to acquisition, over the years Mitel has acquired, InterTel of the US, Aastra of Europe, Mavenir, Telepo of Sweden, Ascom, Toshiba, and others.
This acquisition is a shot across the bow of struggling and bankrupt Avaya, who holds #2 market share and Cisco Systems, the global leader in IP-based PBX systems. Mitel becomes the Global #2 provider of hosted cloud phones or UCaaS.
The market is changing quickly as companies move their business to the cloud. In Japan, AINEO introduced a ShoreTel based cloud phone service in 2011 and migrated to Mitel systems in 2012. To expand customer service and provisioning power, AINEO buffed up to carrier services in Dec 2016. AINEO is the distributor for both Shoretel and Mitel on premise systems in Japan. AINEO’s popular cloud-based offering is iPBX Hosting with the iPBX Circle software that does phone, chat, text, doc sharing, video, with many other features no one else offers.