On the news that Toshiba Corp. is leaving the telecom business, Ottawa’s Mitel has swooped in to acquire the assets and maintenance obligations the Japanese giant is leaving behind.
Mitel will acquire certain assets, inventory and support obligations from Toshiba’s telecommunications division, which the firm announced it was shuttering in March. As part of the deal, for which financial terms were not disclosed, the Ottawa telecom firm will also absorb select Toshiba sales, support and R&D staff.
The acquisition was first announced in May when Toshiba and Mitel signed a memorandum of understanding. In a statement, Mitel says the acquisition aligns with the firm’s shifting focus on providing cloud-based communications solutions.
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“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, CEO of Mitel. “We are excited to officially welcome Toshiba customers, partners and employees to the Mitel family.”
Mr. McBee told OBJ earlier this year that the company was well positioned for acquisitions following the sell-off of its mobile division, a deal that officially closed in March. The chief executive and analysts seemingly agree that the sale “simplifies the story” for Mitel, which laid off hundreds of employees worldwide in May in an effort to reduce redundancies within the firm.