ExplainerUC&C21 Dec 2016 · 5 min read

Mitel Unified Communications - The Telecoms Powerhouse

Interested in knowing a little Mitel history? Read about Mitel and how they got started to where they are today.

Business communication experts that power more than 2 billion connections each day, Mitel Networks are a telecommunications powerhouse, which provides unified communication solutions to companies across the world. In the past, Mitel was known for designing PBX applications and systems, but a change in ownership in 2001 lead the company to begin focusing more heavily on the advent of VoIP - Voice-over-IP products.The headquarters for Mitel is located in Ottawa, Ontario, in Canada, but the company works with resellers and partners across the globe - making Mitel a name that many businesses respect and appreciate.

The Creation of Mitel

Mitel was originally founded during 1972, by two individuals: Terry Matthews and Michael Cowpland. The name for the business was confirmed to stand for a combination of both founder's names, and their original product - (Mi)ke and (Te)rry's (L)awnmowers. Interestingly, the corporation was formed with the blessing of the pair's employer - Bell Northern Research.

When the very first shipment of three lawnmowers became lost in shipping, Michael and Terry decided that they needed to adjust their business efforts. They decided to produce a telephony tone receiver, or tone-to-pulse converter based on the Ph.D. thesis of Michael Cowpland. Following the success of their new product, the founders delved further into the industry, realising the value of software technology and microprocessors.

By the time 1975 rolled around, Mitel had introduced the SX200 PBX, and after that, the company grew at a rate of around 100% per year - reaching the annual revenue mark of $100 million by 1981. In 1985, the company hit a financial crisis, forcing the board of directors to sell a controlling interest of shares within the company to British Telecom. A few years later, BT left the telecommunications equipment industry, and sold its interest in Mitel to a company known as Schroder Ventures, who chose to install new management.

During all of this, Mitel continued diversifying its product portfolio.

Mitel, Divided

With the turn of the new millennium, further changes took place in Mitel's network, with a split occurring during 2001. The company name and PBX division were given to Terry Matthews, who chose to take the business private. The purchase cost $300 million Canadian, and resulted in Matthews purchasing 90% of the PBX division. That division took the name "Mitel Networks" and developed a line of PBX solutions based on VoIP standards.

The original company stuck to the semiconductor division, adopting the name "Zarlink", to reflect a networking focus. During 2001, the intellectual properties of Mitel Networks were placed into a company known as Mitel Knowledge Corporation, which creates SIP-based IP PBX solutions.

A further split was conducted in 2002 when the manufacturing arm of Mitel split out to become BreconRidge. In 2004, Mitel Network simplified its name and returned to calling itself Mitel.

In 2007, Mitel announced that an agreement had been reached with Inter-Tel to purchase the company - a process which would amount to a merger that doubled the original size of Mitel. The acquisition was completed by August 2007, and the companies continued under the name "Mitel", with the company withdrawing from their decision to release an IPO.

One of the separated companies - MKC Networks established itself not as a part of Mitel Networks, but as a company producing a product intended to be sold through Mitel Networks, with ultimate control under Terry Matthew's name. By April 22^nd, in 2010, the company was listed on Nasdaq as a public company, with the MITL symbol.

Recent Acquisitions

During June 2013, Mitel announced that it had acquired one of its most important suppliers - prairieFyre software Inc - a privately held global provider of business analytics, contact centre, and optimisation software for the workforce. The cost to Mitel for the acquisition was around $20 million, and it was only one of a list of acquisitions that took place over the coming years:

2007 Mitel acquired Inter-Tel
2013 acquired prairieFyre software Inc
In November 2013, Mitel purchased Aastra Technologies for $400 million
In March 2014, Mitel acquired contact centre supplier OAISYS for an undisclosed sum
In March 2015, Mitel announced intentions to buy Mavenir Systems for $560 million
In April 2016, Mitel announced intentions to buy Polycom for $1.96 billion - however, the acquisition did not happen.
2017, Mitel sells off Mavenir Systems Xura and loses $175 million
July 2017, Mitel acquires Toshiba Corporation's Unified Communications business
2017, Mitel announces they are acquiring ShoreTel for $430 million

The Mitel Portfolio

Today, Mitel's portfolio makes up one of the broadest in the industry when it comes to collaboration and unified communications solutions. They support the needs of both large enterprises and small businesses on premise and in the cloud. Mitel's goal is to assist companies in becoming more productive, with innovative solutions that help customers stay at the cutting edge of technology trends - including BYOD.

Mitel currently has more than 2500 channel partners across the world, which allows them to help their partners win customers with exceptional sales and marketing, and fantastically flexible solutions on premise and in the cloud. Currently, their product lineup includes: