No Deal: ShoreTel Turns Away Mitel Acquisition Offer

mitel_blue_logoIn the telecom industry, companies are constantly changing and evolving through mergers. Mitel Networks recently sent an offer to acquire ShoreTel for a total of $540 million. Before worrying about another shake-up, the ShoreTel board of directors rejected the offer as they deemed it as undervaluing their company and development possibilities.

Mitel sees ShoreTel as a valuable acquisition as it would not only eliminate competition but expand their presence in the United States. Mitel has also remained consistent as this is the second time they placed a bid to acquire ShoreTel. Although these negotiations have yet to produce for Mitel, they have been busy of late reaching other deals with Frontier Communications and Aastra Technologies.

It is unknown how interested ShoreTel is in selling their company to begin with but clearly the two voice services and systems gear companies are not on the same page at this time.

“We believe Mitel’s proposal is financially inadequate, is an opportunistic attempt to acquire ShoreTel’s assets, and is not in the best interests of ShoreTel stockholders.” said Chuck Kissner, chair of ShoreTel’s board of directors.

ShoreTel feels that they already have a history of success and growth. This is likely to continue as their plans for the future consists of increasing growth in unified communications by growing cloud product customers. In addition, they will finish the expansion of next-generation platforms.

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