ShoreTel is acquiring Corvisa, a provider of cloud-based communications solutions for $8.5 million, enhancing its unified communications capabilities.
After meeting customary closing conditions, the acquisition is set to close during the March 2016 quarter. ShoreTel expects the ongoing impact of the acquired Corvisa business in the first 90 days to operations to reduce its non-GAAP operating profit by approximately $3.5 million.
The vendor said the acquisition will grow its revenue from hosted services around 30 percent by 2017.
ShoreTel said the acquisition will enhance its solutions and architecture in four key areas: accelerating third-party application within the ShoreTel ecosystem, SIP trunking, contact centers, and the addition of about 95 employees, the majority of which are in technical and customer-facing roles.
ShoreTel said that Corvisa's employee base will "be instrumental in the acceleration of ShoreTel's innovative architecture and product roadmap."
While ShoreTel has been the communications platform of choice for a number domestic U.S.-based service providers like Frontier for business customers, Corvisa will give ShoreTel additional cloud service capabilities in Europe with the addition of Corvisa's Amsterdam and UK data centers.
Acquisitions have been a part of ShoreTel's growth strategy. Although it has had to fend off a number of unsolicited bids from rival Mitel, the service provider previously acquired M5 Australia.
- see the release
ShoreTel board rejects Mitel's latest buyout offer
Mitel raises its ShoreTel offer to $8.50 per share in cash, stock
Hybrid cloud deployments become larger factor in UCaaS growth, says Synergy Research