Mitel — BrandWiki

Mitel

Overview

Mitel Networks Corporation

type	Private
area served	Worldwide
key people	Mike Robinson (president and CEO) Luiz Domingos (CTO) Jamshid Rezaei (CIO) Eric Hanson (CMO) Greg Hiscock (CLO) Janine Yetter (CFO)
industry	Telecommunications
products	Mitel Products Page
num employees	4,200
num employees year	2017
foundation	1973
founders	Michael Cowpland Terry Matthews
location city	Ottawa, Ontario
location country	Canada
homepage	http://www.mitel.com
footnotes	‡R1R‡

Mitel Networks Corporation is a Canadian telecommunications company. The company previously produced TDM PBX systems and applications, but after a change in ownership in 2001, now focuses almost entirely on Voice-over-IP (VoIP), unified communications, collaboration and contact center products.[2] Mitel is headquartered in Ottawa, Ontario, Canada, with offices, partners and resellers worldwide.[3][4]

In April 2018, the company announced it had been bought by an investor group led by Searchlight Capital Partners.[5] In March 2025, the ownership of Mitel shifted from Searchlight Capital Partners to its lenders.

History

Founding

2000 - 2010

In 2001, Terry Matthews paid US$230 million to acquire the communications network division of Mitel, along with the Mitel trademark.[14][15] It began a new chapter, under the name Mitel Networks, by developing a family of PBXs based on Internet standards for Voice over IP (VoIP).

The original company retained the semiconductor division. It was renamed Zarlink (Tsar of Links) Semiconductor to reflect its interest in networking.

Mitel Knowledge Corporation, also controlled by Matthews, was incorporated in 2001.[16] Numerous patents were transferred to the company.[17] It later evolved into MKC Networks, which made a family of SIP-based IP PBX systems.

An additional split took place in 2002, when the manufacturing arm was spun off out of Mitel Networks to become a contract manufacturer called BreconRidge. With these developments, the original Mitel Corporation was split into three companies: Zarlink (which though renamed is the original corporate entity), Mitel Networks, and BreconRidge.[18]

On May 10, 2006, the new company announced its intention to launch an Initial public offering (IPO). No detailed information was released, but the press indicated that the company hoped to raise $150 million.[19]

In April 2007, Mitel announced an agreement with Inter-Tel to purchase that company. This purchase would amount to a merger of equals, with the merged company being twice the size of the original Mitel. This acquisition was completed in August 2007. Management had announced that the companies will carry on under the name Mitel. As a result of the merger, Mitel withdrew from the IPO registration process.[20]

On April 22, 2010, Mitel became a public company,[21] listed on Nasdaq with the symbol MITL, and its initial offering stood at $14 per share.[22] Within a year, the stock price had dropped to $5.50[23] and was described by CNBC's Jim Cramer as one of the worst IPOs of the year.[24] Cramer blamed excessively optimistic pricing, excessive debt and the fear that company insiders would sell, dropping the stock value.[24]

During the company's Q1 conference call, Don Smith (CEO) announced his retirement from the company once the board of directors was able to find a suitable replacement. Smith said he would remain on the board after retirement.[25]

2011 - 2020

In 2011, Mitel launched litigation against at least two Australian businesses for infringing on Mitel's trademark and the businesses for engaging in misleading or deceptive conduct under Australian consumer law.[26] The first case against Melbourne telecommunications company MyTel was resolved.[27]

On March 1, 2013, Mitel announced it had completed the sale of its DataNet CommSource business unit ("DataNet") in Sioux Falls to EarthBend, LLC.[28] In December 2016 the company announced that it had sold its mobility unit for $385 million to Xura and that would focus its business on Unified Communications.[29]

In June 2013, Mitel announced the completion of acquisition of one of its key suppliers, prairieFyre Software Inc., a privately held global provider of contact center, business analytics, and workforce optimization software and services. The net cash cost to Mitel for the acquisition of prairieFyre was approximately $20 million. prairieFyre was an original equipment manufacturer (OEM) that supplied Mitel with its existing contact center solution.[30]

In November 2013, Mitel announced the purchase of Aastra Technologies.[31]

On March 4, 2014, Mitel announced the acquisition of contact center supplier OAISYS.

In March 2015, Mitel announced to buy Mavenir Systems for $560 million.[32]

In April 2016, Mitel announced its intention to buy Polycom for $1.96 billion.[33] The deal was intended to give existing Polycom shareholders both cash and new Mitel shares for their holdings and result in Polycom shareholders owning 60% of the combined company. The acquisition was ended in favour of a merger with Siris Capital instead,[34] forcing Polycom to pay a US$60 million fee to Mitel for cancelling the deal.[35]

In July 2017, Mitel announced they had reached a deal to buy ShoreTel for $530 million, increasing the size of the company to approximately 4,200 employees.[36][37][38]

Major League Baseball, in 2018, entered into a deal with Mitel to unify communications "between the press box, dugout, bullpen and video review rooms at every MLB ballpark from the Rogers Centre to Wrigley Field".[39]

On November 30, 2018, Mitel announced that all the shares of Mitel were acquired by affiliates of funds advised by Searchlight Capital Partners. The shares ceased trading on the TSX and Nasdaq[40] and were delisted.

In April 2019, Mitel moved to merge with Avaya.[41] The merger did not go through.[42]

In October 2019, Mitel’s CEO Richard McBee resigned.[43] Mary McDowell became the new CEO.[44]

Mitel

History

Founding

1980 - 2000

2000 - 2010

2011 - 2020

2020 - Present

Product lineup

External links

References