Mitel® (Nasdaq:MITL) (TSX:MNW), a leading provider of cloud and premises-based unified communications software solutions, today announced it has completed the sale of its DataNet CommSource business unit ("DataNet") in Sioux Falls to EarthBend, a provider of telephony and IT solutions with headquarters in the U.S. Midwest.
Effective immediately, all DataNet CommSource employees have transitioned to EarthBend, positioning them to provide seamless continuity of service to existing DataNet CommSource customers and channel partners.
"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."
The divestiture of DataNet CommSource is part of Mitel's ongoing strategy to simplify and focus the company's core business. With Mitel's shift to an indirect go-to-market model, the business need and rationale to maintain a direct value added distribution unit and value added reseller business has diminished.
"Employees and partners are cornerstones of Mitel's business and corporate values," said Richard McBee, president and CEO of Mitel. "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."
As previously announced in March 2012, Mitel has been exploring the sale of DataNet and therefore Mitel's financial results have presented DataNet's operations as discontinued operations since that time. For more information about the financial results of DataNet, please see Mitel's 10-Q filed with the Securities & Exchange Commission for the quarter ended January 31, 2013.
Sagent Advisors LLC served as financial advisor to Mitel on the transaction.
The principals of EarthBend have been distributing telephony peripherals and IT solutions to a vast group a telecommunication resellers since 1993. In addition to their US and Canadian distribution footprint, EarthBend has been serving clients directly in the Midwest for 30 years. Today EarthBend serves as an extension of their 3,000 plus customers providing highly qualified engineers with key certifications from some of the largest voice, data, and technology manufacturers in the industry. Their offerings are highly scalable, secure, easily managed, and optimized to meet their evolving customer needs with an extreme focus on delivering cost-effective solutions and best-in-class customer satisfaction.
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.
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