On December 19, 2016 ,After failing to complete its $1.96 billion merger with Polycom earlier this year when Polycom instead got acquired by Siris Capital for $2 billion, today Mitel Networks began the process of streamlining its business to go forth alone, or find another acquisition or merger as a simpler company.
Mitel announced that it would divest Mitel Mobility, its mobile operations, to Xura for $360 million in cash, plus a $35 million non-interest bearing promissory note and an equity interest in Sierra Private Investments L.P., the limited partnership that will own both Xura and the mobile division. Mitel plans now to focus its business more squarely on unified communications. Coincidentally or not, Xura, like Polycom, was also acquired earlier this year by Siris for $649 million. Alongside this deal, Xura also announced another acquisition. it’s also buying Ranzure, which develops 5G radio access network technology, for an undisclosed sum.
While the mobility part of Mitel’s business is moving to Xura. Mitel is going to focus more on unified communications, which was its plan for Polycom before the deal fell through.
Xura offers a portfolio of digital services solutions that enable global communications across a variety of mobile devices and platforms. We help communication service providers (CSPs) and enterprises navigate and monetize the digital ecosystem to create innovative, new experiences through our cloud-based offerings. Our solutions touch more than three billion people through 350+ service providers and enterprises in 140+ countries.
Mitel is a global provider of business communications and collaboration software and services. Mitel’s innovations make it easier to connect and collaborate, while reducing costs and implementation headaches. Market leaders like VMware and Research in Motion partner with Mitel to seamlessly integrate their solutions – increasing value to customers.
You can find more information about Xura’s acquisition of Mitel on TechCrunch.