NEC Partners Set for 'Fairly Smooth' Transition Amid Acquisition by Intermedia

NEC partners have new decision-makers at the helm, as the company sells its Univerge Blue business in North America and partner relationships in Europe to Intermedia. The move follows NEC's April decision to shutter its PBX business outside of Japan.

Analysts have assured that NEC partners will be fine amid a transition set to impact its unified-communications-as-a-service (UCaaS) business, as it finds a familiar home for its Univerge Blue business segment.

The alliance, dating back to 2020, reaches a peak with Intermedia acquiring that Univerge Blue. NEC found it increasingly difficult to adapt to the changing UCaaS landscape, something its once competitors − Microsoft and Cisco − managed to pull off with relative ease.

Michael Gold, CEO of Intermedia, in a statement called the acquisition of the UCaaS portfolio a "transition," adding that he "looks forward to welcoming NEC’s Univerge Blue customers and partners directly to the Intermedia family."

Intermedia's Michael Gold

"I think it is great for Intermedia, of course, and I agree on the surface it appears the transition will be fairly smooth for partners," David Smith, founder and principal of InFlow Analysis, told Channel Futures. However, "nothing is ever completely smooth, so I think considerations will have to be made along the lines of partner alignment, and Intermedia will have to ensure that its business model and partner program align with the partner's existing strategy."

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NEC Partners Will Have to Adapt

Smith says that NEC partners will undoubtedly face some hardships concerning its identity and will need to make some adjustments.

"There are some branding and marketing adjustments partners may have to make if Intermedia rebrands Univerge Blue."

To date, there has been no indication this might occur.

Smith additionally shared that while Intermedia vows a smooth transition, it must ensure a seamless one for customers and maintain high-quality customer support.

"Intermedia and NEC have to offer transparency to partners; for starters, Intermedia's long-term growth strategy and plans must be clear," Smith said.

He also acknowledges that NEC owes it to partners to be transparent and tell them exactly why it is selling Univerge Blue.

Founder and chief global analyst at Techaisle, Anurag Agrawal, agrees the transition should be relatively smooth since Univerge Blue was built on Intermedia's platform.

"Existing service agreements, contracts and support arrangements will remain in place to ensure continuity of service," Agrawal said.

Techaisle's Anurag Agrawal

The primary test of the acquisition will be for Intermedia to provide the same level of support to NEC's partners that NEC had been providing.

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"However, Intermedia will likely have a task force to evaluate both partner programs, streamline them and announce something new later in the first half of next year," the analyst said.

Intermedia didn't say how much it's paying for Univerge Blue.