EarthBend Buys Mitel’s DataNet CommSource
EarthBend Buys Mitel’s DataNet CommSource by UCStrategies Staff
Canada-based Mitel Networks, a unified communications and collaboration (UCC) software and solutions provider, has sold its DataNet CommSource business unit to EarthBend, a telephony and IT solutions provider. Employees of DataNet CommSource have all been completely transitioned to EarthBend, which touts to serving clients directly in the Midwest. Sagent Advisors, LLC was Mitel’s financial advisor during the sales transaction. The terms of the sales agreement were not publicly disclosed.
Mitel explains its decision to sell DataNet as part of a continuing strategy to refine the company’s core business. Mitel is said to be moving toward an “indirect go-to-market model.” Thus, the need for maintaining a business unit that deals with either direct value-added distribution or value-added reselling has grown smaller.
It was announced by Mitel in March 2012 that the company was considering the idea of selling its DataNet CommSource business unit. Thus, its financial results showed DataNet’s operations as discontinued since that given time period.
Mitel has also modified its channel program over the past few years. There’s the 3+1 strategy announced in May 2011, which aimed to place Mitel in the context of a midmarket-focused UC and networking vendor. In December 2011, Mitel then launched its Authorized Partner Service Program (APSP), a scheme that subcontracts the company’s solution providers to offer local services and support for both select customers and Mitel products.
“I am excited to be joining an experienced team of more than 40 dedicated employees, led by General Manager Ryan Donovan, who will continue serving customers in the Midwest market and across Mitel's extensive channel,” said Rob Beyer, president and CEO of EarthBend. “We will continue to provide voice, data and infrastructure solutions and services to our customers and invest in key technical expertise to support our customers' needs.”
“Employees and partners are cornerstones of Mitel's business and corporate values,” said Richard McBee, president and CEO of Mitel, in a prepared statement. “With EarthBend, I am delighted that we identified a buyer that recognizes the skills and talent inherent in DataNet CommSource employees, and also the growth opportunity associated with ongoing support of Mitel's channel business in the U.S.” (KOM) Link. Link. Link.