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 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.