Mitel Announces Definitive Agreement to Sell DeTeWe to German ICT Systems Integrator Ostertag Group
Twitter
Facebook
Google+
LinkedIn
Strategic Move to Strengthen Both Companies as German Market Prepares for Digital Transformation
OTTAWA and STUTTGART, Germany, March 22, 2018 (GLOBE NEWSWIRE)
Mitel focuses on UCC market; disposes of non-core systems integration business; aligns go-to-market model across Europe
Ostertag strengthens position as a prime Systems Integrator in Germany for ICT and cloud solutions; adds scale, regional coverage and innovative technical skills
Maintains DeTeWe, as part of Ostertag, as a Mitel channel partner in Germany, enabling seamless continuity for customers and employees
OTTAWA and STUTTGART, Germany, March 22, 2018 (GLOBE NEWSWIRE) — Mitel (NASDAQ:MITL) (TSX:MNW) and Ostertag Holding GmbH (HRB 732189) today announced that they have entered into a definitive agreement in which Ostertag will acquire DeTeWe Communications GmbH, Mitel’s direct systems integration business in Germany. As part of the agreement, all DeTeWe operations, employees and customer contracts will transition to Ostertag upon closing, which is expected in early Q2 2018 subject to regulatory approvals and customary closing conditions. Financial details of the transaction were not disclosed.
Strengthens Mitel and Ostertag as German businesses look for seamless communications to drive digital transformation
Building on their existing relationship, the transaction is a strategic and logical move for both companies. Mitel is selling its non-core system integration business, simplifying and aligning its go-to-market model across Europe as it focuses on the unified communications and collaboration market. Ostertag, a prominent platform-independent ICT systems integrator in Germany, is capitalizing on domestic market consolidation as it positions the company to become one of the market leaders in ICT services and consulting.
“This is a win-win that sets Ostertag and Mitel up for growth and success as businesses in Germany begin to pivot to cloud-enabled solutions to help digitally transform their operations,” said Rich McBee, CEO of Mitel. “With DeTeWe as part of the Ostertag Group, our mutual customers will continue to benefit from Mitel solutions, support and services, and will be ideally positioned to take advantage of advanced communications and collaboration solutions that will enable them to move to the cloud when and how they want.”
Seamless business continuity for customers and employees in Germany
The definitive agreement includes a transition services agreement, enabling seamless continuity of support and services for customers. Upon closing, DeTeWe, as part of the Ostertag Group, will continue to be a channel partner for Mitel in Germany, and all other existing suppliers.
“The market for communications solutions is growing rapidly, driven by increasing customer demand for integrated solutions that can connect employees wherever they are. Ostertag recognized this trend early and has successfully leveraged innovation, sophisticated ICT solutions and managed services, to outpace the market and win business with mid-sized and large companies as well as in key verticals like healthcare” said Marcus Haensel, Managing Director of Ostertag. “With DeTeWe becoming a part of the group, Ostertag will be even better able to offer customers a rich selection of innovative services and solutions.”
As a result of this transaction, Manuel Ferre-Hernandez, currently Country Manager of Mitel Germany, immediately becomes Managing Director of Mitel Germany. Once the transaction is completed, Christian Fron will join Ostertag Holding GmbH as a member of their executive management team, and will continue to operate in the role of Managing Director of DeTeWe.
Forward Looking Statements
Some of the statements in this communication are forward-looking statements (or forward-looking information) within the meaning of applicable U.S. and Canadian securities laws. These include statements using the words believe, target, outlook, may, will, should, could, estimate, continue, expect, intend, plan, predict, potential, project and anticipate, and similar statements which do not describe the present or provide information about the past. There is no guarantee that the expected events or expected results will actually occur. Such statements are subject to a number of risks and uncertainties. These statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, operational and other factors. Any changes in these assumptions or other factors could cause actual results to differ materially from current expectations. All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth in this paragraph. Undue reliance should not be placed on such statements. In addition, material risks that could cause actual results to differ from forward-looking statements include: the inherent uncertainty associated with financial or other projections; the risk that the sale of DeTeWe Communications GmbH will not be consummated or that the benefits of such transaction will not be achieved; the integration of Mitel and ShoreTel and the ability to recognize the anticipated benefits from the acquisition of ShoreTel; the anticipated size of the markets and continued demand for Mitel’s products and services; the impact of competitive products and pricing and disruption to the combined business that could result from the acquisition of ShoreTel; access to available financing on a timely basis and on reasonable terms; risks associated with the non-cash consideration received by Mitel in connection with the divestment of Mitel’s mobile business unit; Mitel’s ability to achieve or sustain profitability in the future; fluctuations in quarterly and annual revenues and operating results; fluctuations in foreign exchange rates; current and ongoing global economic instability, political unrest and related sanctions; intense competition; reliance on channel partners for a significant component of sales; dependence upon a small number of outside contract manufacturers to manufacture products; and, Mitel’s ability to successfully implement and achieve its business strategies, including its growth of the company through acquisitions and the integration of recently acquired businesses and realization of synergies, including the acquisition of ShoreTel. Additional risks are described under the heading “Risk Factors” in Mitel’s Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC and Canadian securities regulatory authorities on February 28, 2018. Forward-looking statements speak only as of the date they are made. Except as required by law, Mitel has no intention or obligation to update or to publicly announce the results of any revisions to any of the forward-looking statements to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward-looking statements.
About Ostertag Group
Ostertag Group (www.ostertag.de) integrates a suite of best-in-class technologies available in the market including its own software applications. It also operates infrastructure as a managed services provider.
Founded in 1995 by Gerhard Ostertag, the company grew rapidly and has been established as Ostertag Group in 2016. As part of its further growth strategy, Ostertag acquired the telecommunication business unit of euromicron Deutschland in 2017. It currently supports more than 2.000 customers with approximately 300 employees, including more than 200 certified service engineers across 14 locations in Germany.
About Mitel
A global market leader in business communications powering more than two billion business connections, Mitel (NASDAQ:MITL) (TSX:MNW) helps businesses and service providers connect, collaborate and provide innovative services to their customers. Our innovation and communications experts serve more than 70 million business users in more than 100 countries. For more information, go to www.mitel.com and follow us on Twitter @Mitel.
Mitel is the registered trademark of Mitel Networks Corporation.
All other trademarks are the property of their respective owners.
Contact Information
Media
Camille Beasley
469-212-0433
camille.beasley@mitel.com
Investors
Michael McCarthy
469-574-8134
michael.mccarthy@mitel.com
Industry Analysts
Denise Hogberg
469-212-0434
denise.hogberg@mitel.com
PR Archives: Latest, By Company, By Date