This week, ShoreTel (News - Alert) announced it will be purchasing Corvisa, a cloud-based communications solution provider, for $8.5 million in cash from Novation Companies. The acquisition is expected to close early 2016, and will beef up ShoreTel’s offerings in several key areas.
"The acquisition of Corvisa aligns tightly with our strategic plan and acquisition priorities. We are in our acceleration phase of our strategic plan, focused on accelerating technology time to market, growing hosted revenue, and expanding our cloud offering globally," said Don Joos, President and CEO of ShoreTel.
In acquiring Corvisa, ShoreTel gets its hands on Corvisa’s open, standards based APIs as well as their SDKs to aid third party integration of applications in the ShoreTel ecosystem. In addition, the inclusion of Corvisa’s SIP trunking opens impressive revenue opportunity as a SIP trunking provider.
Joos continued to note, "Corvisa's technology and engineering resources are very complementary to ShoreTel. I'm excited about the robust API's to accelerate application integration and the additional growth that an expanded cloud contact center will bring."
While ShoreTel is a known entity in enterprise communications, the call center is an area it lacks major presence. The Corvisa purchase provides a standalone call center solution that is easily integrate with ShoreTel and non-ShoreTel solutions.
The fourth key benefit for ShoreTel comes in the form of human capital. About a 100 Corvisa employees will join the ShoreTel team, of those many are technical engineers capable of playing integral roles in the development of ShoreTel’s architecture and product roadmap.
"We are delighted to be joining ShoreTel," said Matt Lautz, CEO of Corvisa. "ShoreTel has global reach, is able to scale for all business communication needs and has shown a strong track record of growth. We believe Corvisa's cloud contact center coupled with ShoreTel's go-to-market expertise in this area creates a compelling combination."
The end game for ShoreTel is expanded hosted revenue growth, with the expectation of a rate of nearly 30 percent through 2017. Only time will tell if they hit the mark, but this is certainly a large step in that direction.
Edited by Kyle Piscioniere