Mitel Buys Toshiba's UC Systems Business Assets, Provides 'Clear Path' For Partners

**Editor’s Note: Please click here for a recap of the biggest channel-impacting merger and acquisition news from April.**

Mitel has purchased Toshiba’s Telecommunication Systems Division (TSD), which was set to shut down.

TSD is a manufacturer of IP business telephone systems designed for small-to medium-size businesses and larger enterprises with multiple locations. Toshiba planned to shut down sales of new systems in its business phone division as part of its continuing global restructuring.

A memorandum of understanding was signed by Mitel and Toshiba on May 11. Effective immediately, Toshiba customers and partners have a “clear path forward with Mitel, including ongoing access to existing Toshiba products and services,” Mitel said.

In addition, to ensure business continuity, a key group of Toshiba sales, support and R&D employees will join Mitel and will continue to provide support to existing Toshiba customers and partners. The transaction also includes a transition services agreement to provide product and service continuity.

SnapTech IT’s Ben Stiegler

Snaptech IT is one of about 250 authorized TSD dealers in the United States. Back in March, Ben Stiegler, its vice president of business development for Northern California, said dealers in the U.S., Canada and Latin America were all “blindsided” by the news of the closure.

Mitel’s purchase is a “relief, but who knows how much of one as we have not really had any detailed information from Mitel yet,” he said.

Mitel said the acquisition reflects its strategy to focus on expanding its position in the UCC market as digital transformation accelerates demand for cloud-based business communications services, and business productivity applications are reshaping organizations globally.

“In a rapidly changing and opportunity rich technology landscape, Mitel is helping customers find a seamless path forward whether in the cloud, on premise or a hybrid of both,” said Rich McBee, Mitel’s CEO. “We are excited to officially welcome Toshiba customers, partners and employees to the Mitel family.”