August 23, 2019
The UCaaS world fixated on Mitel this week.
The Canadian vendor reportedly offered to buy Avaya in a deal that would create a “Tier 1 telecommunications player.” If that wasn’t enough, a UCaaS study praised Mitel for its pricing. Channel chief John Lindsley also found his way into the Top Gun 51.
California-based TPx Communications also found itself in M&A discussion. A private equity firm will buy the TPx and avert the company’s plans to go public.
Our editors covered Mitel, TPx and a few other channel-facing companies this week. We’ve once again compiled seven of our most popular stories for you – our beloved readers – to behold. You’ll find them listed below.
7. ScanSource Disappoints in Q4, Realigns Investments
The Greenville, South Carolina-based distributor will divest some of its assets following a disappointing quarter.
ScanSource said it will sell off certain businesses that reside outside of North America. That does not appear to include its digital distribution business, of which the master agent Intelisys is a member.
ScanSource reported a 3% year-over-year drop in revenue for the fourth quarter of its fiscal year.
Lynn Haber reported the earnings.
6. In a Money Drought? It’s Time to Meet the Rainmakers
Mike Schmidtmann wants to help partners land “whale” accounts.
Schmidtmann, who works for sales leadership consultancy Trans4mers, will head up a panel of “rainmakers” at Channel Partners Evolution next month. He and sales experts from Eclipse Telecom, Hyde Group and CWPS Inc. will dispense advice for building recurring revenue accounts.
Kelly Teal interviewed the “rainmakers.”
5. CenturyLink, CWA Reach Contract Agreement for 8,000 Workers
The Communications Workers of America (CWA) won’t lead a strike against CenturyLink for now.
CenturyLink agreed to a three-year contract extension for more than 8,000 employees in 13 Western and Midwestern states. The tentative deal increases wages and reduces health care costs.
The company launched a new business services bundle at around the same time.
Edward Gately has the scoop.
4. TPx to Be Acquired by Private Equity Firm to Accelerate Managed Services
Siris will buy the managed services and connectivity provider, which will continue “business as usual.”
The previous plan was for Pensare Acquisition Corp. to buy TPx and list it on the Nasdaq. The two parties called off the agreement, and Siris announced plans to buy the former CLEC from investors.
— Edward Gately (@EdwardGately) August 19, 2019
The financially undisclosed transaction will close early in 2020.
Learn about the acquisition.
3. Mitel ID’d as Lowest-Priced in Growing UCaaS, Hosted PBX Market
A research firm concluded that Mitel sells at lower prices than RingCentral, 8×8 and other UCaaS providers.
Eastern Management Group president and CEO John Malone wrote in a guest column that he expected Mitel to be the price leader, considering that it is the largest provider. Malone also anticipates UCaaS prices to rise over the next year.
Check out Malone’s blog.
2. Critical Start Hires Palo Alto Networks Vet as Channel Chief
Dwayne Myers will serve Texas-based Critical Start as vice president of channels and alliances.
Myers, who previously worked for Palo Alto Networks, will help expand Critical Start’s channel ecosystem of distributors, VARs and various channel partners. Critical Start provides a managed detection and response (MDR) platform that reportedly grew 300% last year.
Get details about Myers.
1. Mitel Acquiring Avaya Would Create Direct Cisco, Microsoft Rival
Oh, the juicy UCaaS acquisition rumors continue …… Bloomberg reported that Mitel has made a bid for Avaya. In the meantime, Reuters reported that Avaya may accept a bid from a private equity firm instead. Avaya is not commenting on the reports.
— Channel Partners (@Channel_Online) August 21, 2019
We talked to a couple of analysts about the implications of a Mitel-Avaya deal. According to one, this would be a bigger acquisition than Mitel’s typical transactions.
Read Edward Gately’s analysis.
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