You may recall, prior to the new year, that ShoreTel (News - Alert) announced the acquisition of cloud-based unified communications provider Corvisa for a reported $8.5 million in cash. At the time of the initial announcement, the acquisition was expected to close some time in the first quarter of 2016. Well, it looks like “first quarter” meant “six days into 2016” as the acquisition officially completed as of Wednesday.
Considering how excited ShoreTel seemed about the deal, it’s great news for the company that the acquisition closed so quickly and so smoothly. The company expects Corvisa to increase its hosted services revenue by about 30 percent as of 2017, after all.
Other major benefits Corvisa brings to the table include accelerated third part application integration within the ShoreTel ecosystem, allowing ShoreTel to position itself as a SIP trunking provider, expanded contact center market share through integration with non-ShoreTel communication solutions, and 95 skilled new employees.
Also toward the end of December, OneStream Networks and ShoreTel combined forces by making the former’s SIP trunking service compliant with the latter’s line of phone systems and unified communications tools.
"The close of this acquisition represents another milestone in the acceleration phase of our strategic plan. The addition of Corvisa's standards-based APIs, SIP trunking and standalone contact center expands our cloud-based offering while providing new sources of hosted revenue," said Don Joos, president and CEO of ShoreTel. "We are excited to have Corvisa's leadership team and approximately 95 technically skilled and customer-facing employees join ShoreTel to further enhance our development roadmap and go-to-market actions."
ShoreTel is already a popular communications platform in the United States. With its Corvisa acquisition, ShoreTel now has additional cloud service capabilities and, more importantly, reach into Europe thanks to Corvisa’s data centers in the UK and Amsterdam. In other words, Corvisa aligns well with ShoreTel’s goals in terms of accelerating technology time to market, growing hosted revenue and expanding its global cloud offering.
Edited by Kyle Piscioniere