Mitel To Acquire Mavenir Systems For $560M

Mitel (MITL) today announced it will acquire all of the outstanding shares of Mavenir Systems (MVNR) common stock in a cash and stock deal valued at approximately $560 million.

Upon closing of the transaction, Mavenir will become the mobile business division of Mitel, operating under the brand Mavenir. Additionally, Mavenir President Pardeep Kohli will join Mitel and report to Mitel CEO Rich McBee.

With the acquisition of Mavenir, Mitel said it expects to expand its total addressable market by approximately $14 billion by 2018. The Ottawa, Ontario-based cloud communications company also pointed out that the acquisition could help it capitalize on the rapidly expanding enterprise and mobile IP unified communications (UC) markets.

“We believe the combination of Mitel and Mavenir creates a powerful new value proposition for enterprises and mobile service providers, using a common IP technology layer as the foundation for convergence, growth and competitive differentiation,” McBee said in a prepared statement.

Mitel is the fastest-growing and number one market share leader in cloud communications, McBee added. The cloud communications company last month added new features to its MiCloud unified communications-as-a-service (UCaaS) portfolio and could explore new opportunities in the 4G LTE services market as well.

Mavenir specializes in 4G LTE mobile solutions, and Mitel pointed out that the new agreement provides Mavenir with “the financial and operational footprint to drive further market expansion.”

Click here for Talkin’ Cloud’s Top 100 CSP list

McBee recently described 2014 as a “transformational year for Mitel.” The cloud communications company installed over 177,000 new cloud seats, including over 24,000 recurring cloud seats, in the fourth quarter of last year.

Also, Mitel’s recurring cloud seats increased to 269,155 in 2014, up 122 percent on a year-over-year basis, and its total installed cloud base increased to nearly 1.04 million seats, which represented an 83 percent year-over-year increase.

Share your thoughts about this story in the Comments section below, via Twitter @dkobialka or email me at [email protected].