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ShoreTel picks up M5 Networks for $146.3M

Sunnyvale-based IP phone service provider ShoreTel purchased M5 networks for $146.3 million. The deal is made up $84 million in cash and 9.5 million shares of ShoreTel(s shor) stock, with an additional contingent payment of up to $13.7 million. M5 will be operated as a ShoreTel business unit and will be led by M5 CEO Dan Hoffman.

The two companies are a perfect fit as both are highly focused on unified communications (UC) solutions. M5 was privately held until now and began its UC efforts back in 2000. ShoreTel’s IP telephony history dates back even further, to 1996, and now offers VoIP, instant messaging, desktop collaboration tools and mobile UC solutions for multiple platforms.

3 Responses to “ShoreTel picks up M5 Networks for $146.3M”

  1. They’re going to have a heck of a time getting ShoreTel phones work with the M5 Call Conductor service. All current ShoreTel phones speak only MGCP, while M5CC speaks SCCP (i.e. Cisco’s phone-control protocol) and so only supports Cisco 7900 series phones.

  2. Not strange at all… in fact , fairly obvious that If ShoreTel wishes to offer a Cloud based UCaaS or a Managed Service, they would need the pedigree of a Service Provider in combo with Products.