Архив метки: Hewlett Packard

ShoreTel To Acquire Cloud Communications Company M5 Networks For Up To $146 Million

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IP phone company ShoreTel has today announced that it is beefing up its offerings by acquiring unified communications company M5 Networks in a deal that is valued up to $146 million in cash and stock.

ShoreTel’s motivation for snatching up M5 was an effort to be able to offer its customers a choice of either on-premise or hosted solutions, enabling the company to reach a larger and growing market of users looking to deploy unified communications solutions. Gartner predicts that the “Voice as a Service” market is expected to show a 36 percent compounded annual growth rate in North America before 2015 — to $2.2 billion.

ShoreTel acquired enterprise mobility leader Agito Networks in October 2010 to extend the unified communications technology to mobile devices, enabling them to solve the bring-your-own-device problems that are changing the enterprise market.

M5 Networks, too, has made a couple of acquisitions lately, including Callfinity last year and Geckotech the year prior. The cloud communications company, which was founded in 2000, provides phone systems, applications, and cloud communications for businesses, and claims to be one of the country’s largest specialized VoIP providers.

Under the terms of the deal, M5 shareholders will receive approximately $84 million in cash and 9.5 million shares of ShoreTel stock, for a total of about $146.3 million in “initial consideration based on ShoreTel’s average stock price over the prior 30 days of trading.” Furthermore, M5 shareholders could receive additional consideration of up to $13.7, according to the company’s statement.

ShoreTel announced its Q2 earnings today, with revenue coming in at $58.0 million, up 8 percent sequentially from the first quarter of fiscal 2012 and up 22 percent from the second quarter of fiscal year 2011. Despite GAAP net loss for the quarter being $2.5 million, or $0.05 per share, ShoreTel had some highlights over the last six months, forging a distribution relationship with Ingram Micro in October, an expanded distribution agreement with Windstream, a North American communications service provider, along with expanding its relationship with Hewlett Packard, which will become a reseller of ShoreTel’s “Mobility solution.”

According to the statement, following the close of the acquisition, M5 will be operated as a ShoreTel business unit, which will be led by M5 CEO Dan Hoffman, while engineering teams will remain separate.

For more, see ShorTel’s announcement of the acquisition here and the announcement of its Q2 earnings here.

Check out our prior coverage of M5 Networks here.


ShoreTel To Acquire Cloud Communications Company M5 Networks For Up To $146 Million

Samsung May Buy webOS, Recruits Former HP Exec

Samsung-webOS

When HP decided to kill off webOS, most people were more concerned with who would snatch up the PC business that went tumbling down the trash chute alongside it. A few options were thrown out, but most bets were placed on Samsung, who’s reportedly been looking to outsource some notebook orders. Little did we know, Samsung may be interested in grabbing webOS, too.

DigiTimes’ sources report that Samsung may very well be considering the purchase of webOS to better compete against Apple and other Android phone makers. With Google’s proposed acquisition of Motorola, the game has changed significantly.

IP wars have become a bit of trend lately within the mobile industry, and no one is completely safe. However, Android now has a much better position thanks to Motorola’s massive patent trove. HP made a similar move last year with its $1.2 billion acquisition of Palm and its patent portfolio. If Samsung really does end up buying webOS, it may buy itself some desperately needed protection, as well. Which would be quite the boost since the South Korea-based company has been under a full-scale attack from Apple for the past four months. Plus, a webOS acquisition may give Samsung an edge competitively, as well.

Though Google promises to leave Android “open,” Motorola will undoubtedly have the upper hand in terms of Android devices. That said, many Android partners are likely feeling a bit frazzled, and may be looking for their own way to comfortably differentiate. Android’s certainly a success story compared to webOS, but it’s also up for grabs and Motorola will henceforth get first dibs. That’s rather uncomfortable to just about anyone but Motorola.

Apple has iOS. HTC has its massive supply chain. Nokia will have Windows Phone 7 Mango. And Motorola will, of course, have Android. That leaves Samsung, who is a notably strong competitor among these big five device makers, without something special to set it apart.

While webOS hasn’t been a shining star among mobile platforms, that’s not to say that it’s a bad operating system. Quite the opposite actually. webOS partners the beauty and simplicity of iOS with the multi-tasking of Android, but just doesn’t have enough apps to walk the walk. With a little tweaking and some app support, webOS might just be what Samsung needs. Especially if the South Korea-based company is looking to free itself from the litigation-inducing Android.

In other news, HP’s ex-VP of Marketing for the Personal Systems Group has reportedly been recruited by Samsung to take over PC sales, adding weight to rumors that Samsung is interested in HP’s soon-to-be spun off PC business. Samsung has denied, rather vehemently, any intention of picking up HP’s PC business. We agree it wouldn’t be the best fit, since HP’s lower-margin PC business doesn’t really jive with Samsung’s high-margin panel and DRAM businesses.

Here’s Samsung’s statement on the matter:

To put to rest any speculation on this issue, I would like to definitively state that Samsung Electronics will not acquire Hewlett-Packard’s PC Business. Hewlett-Packard is the global leader in the PC business with sales of 40 million units last year, while Samsung is an emerging player in the category and sold about 10 million units in 2010. Based on the significant disparity in scale with Samsung’s own PC business and the complete lack of synergies, it would be both infeasible and imprudent to even consider such an acquisition.


Samsung May Buy webOS, Recruits Former HP Exec