Mitel Acquires Contact Center Supplier prairieFyre
Deal is Expected to Expand Margins, Accelerate Growth, and be Accretive in the
OTTAWA, June 17, 2013 (GLOBE NEWSWIRE) -- Mitel® (Nasdaq:MITL) (TSX:MNW), a
leading provider of cloud and premises-based unified communications (UC)
software solutions, today completed the 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 costto Mitel forthe acquisition of prairieFyre is
approximately$20 million.The deal is expected to be accretive in the first
year. prairieFyre is an original equipment manufacturer (OEM) that has
supplied Mitel with its existing contact center solution.The acquisition is
expected to further strengthen Mitel's position in the growing contact center
market, estimated at over $3B annually*.
The acquisition coincides with the increasing influence of customer facing
contact center applications as a revenue engine for many organizations and a
key factor in building and maintaining customer satisfaction and loyalty.
Additionally, the acquisition provides Mitel a cornerstone development
platform to address increasing demand for cloud-based contact center
solutions, and creates strong pull-through opportunities for associated sales
of Mitel's core IP telephony and UC solutions.
"Mitel's strategy centers on delivering profitable growth to our customers,
partners and shareholders.In response to customer demand, many of our IT
resellers have started building out specialized contact center practices and
are asking for a solution tightly integrated and aligned with Mitel's product
development and roadmaps," said Richard McBee, president and CEO of Mitel. "We
believe the highly integrated nature of our existing OEM relationship with
prairieFyre prior to the acquisition makes this a low risk, high reward and
compelling opportunity to immediately capitalize on market demand, expand
revenue and margins, and positions Mitel for ongoing growth."
The contact center group will continue to be led by prairieFyre CEO Chris
Courneya in his new role as vice president and general manager, Mitel Contact
"The challenging economic climate during the last few years has dramatically
heightened the need for business solutions that drive hard ROI and strengthen
customer interaction. Contact centers facilitate and create a natural
connection point for customer engagement, sales and support, positioningour
applications as critical enablers for customerpurchasing decisions," said Mr.
Courneya. "The integration of prairieFyre into Mitel at this point in the
market gives both organizations the scale and skills to more effectively meet
this demand, and grow our contact center business."
*Ovum, Global Contact Center Technology Spending Forecast: 2011–16, November
Mitel® (Nasdaq:MITL) (TSX:MNW) is a global provider of unified communications
and collaboration (UCC) software, solutions and services that enable
organizations to conduct business anywhere, over any medium with the device of
their choice. Through a single cloud-ready software stream, Mitel's Freedom
architecture provides customers in over 100 countries the flexibility and
simplicity needed to support today's dynamic work environment. For more
information visit www.mitel.com.
Forward Looking Statements
Some of the statements in this press release 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 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. Actual results
may differ materially from those presented in forward-looking statements.
Material risks that could cause actual results to differ include: Mitel's
ability to achieve or sustain profitability in the future; fluctuations in
Mitel's quarterly and annual revenues and operating results; fluctuations in
foreign exchange rates; current and ongoing global economic instability;
intense competition; Mitel's reliance on channel partners for a significant
component of its sales; Mitel's dependence upon a small number of outside
contract manufacturers to manufacture its products; Mitel's ability to
successfully implement its restructuring plans; Mitel's ability to integrate
the acquisition of prairieFyre Software Inc. efficiently and effectively; and
Mitel's ability to implement and achieve its business strategies successfully.
Additional risks are described under the heading "Risk Factors" in Mitel's
Annual Report on Form 10-K. Mitel has made assumptions regarding, among other
things: no unforeseen changes occurring in the competitive landscape that
would affect the industry generally or Mitel in particular; a stable or
recovering economic environment; no significant event occurring outside the
ordinary course of Mitel's business; Mitel's ability to successfully implement
our restructuring plans; and stable foreign exchange and interest rates.
Forward-looking information is intended to help you understand management's
current views of Mitel's future prospects, and it may not be appropriate for
other purposes. Except as required by law, Mitel will not necessarily update
CONTACT: Amy MacLeod (media), 613-592-2122 x71245,
Malcolm Brown (industry analysts), 613-592-2122 x71246,
Cynthia Hiponia (investor relations), 613-592-2122 x71997,
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