Ottawa: Mitel acquires Toshiba laying off telecom business
The news wherein it was stated that the Toshiba Corp. is leaving telecom business. Ottawa's Mitel has jumped at the opportunity to acquire the assets and maintenance obligations from the Japanese giant which it is leaving behind.
Only certain asset, inventory and support obligations from Toshiba's telecommunications division will be acquired by Mitel. Toshiba made the announcement in March that it was shutting its telecommunications division.
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.
First announced in May, when Toshiba and Mitel signed a memorandum of understanding. In the statement, Mitel says the acquisition aligns with the firm's shifting focus on providing cloud-based communications solutions.
"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 said that the company was well positioned for acquisitions following the sell-off its mobile division, a deal that officially closed in March.
The chief executive and analysts seemingly agree that the sale "simplifies the story" for the Mitel which laid off hundreds of employees worldwide in May in an effort to reduce redundancies within the firm.