• Corvisa’s open APIs and software development kits (SDKs) will accelerate the integration of third-party applications within the ShoreTel ecosystem.
• Adding Corvisa’s SIP trunking to ShoreTel’s portfolio will position the company as a SIP trunking provider, opening new revenue streams for ShoreTel and its channel partners, while also facilitating customer service.
• Corvisa’s standalone cloud-based Contact Center expands ShoreTel’s presence in the growing contact center market by enabling integration with non-ShoreTel communication solutions.
• The acquisition will contribute to the creation of 95 jobs, most of which are in technical and customer-facing roles. These highly sought-after technical engineers will be instrumental in accelerating ShoreTel’s innovative product architecture and roadmap.
In addition, ShoreTel continues to expand its cloud services in Europe as a result of the acquisition of Corvisa's data centers in Amsterdam and the UK.
“The acquisition of Corvisa aligns perfectly with our strategic and acquisition plan priorities. We are in our acceleration phase of the strategic plan, focused on accelerating time to market for this technology, increasing revenue, and expanding our cloud offering globally,” said Don Joos, president and CEO of ShoreTel. “Corvisa’s technology and engineering resources are a great fit for ShoreTel. I am very excited that the powerful API will accelerate application integration and the growth that a fully developed contact center will bring.”.
“We are thrilled to be joining ShoreTel,” said Matt Lautz, CEO of Corvisa. “ShoreTel has a global reach, is able to scale to meet all enterprise communication needs, and has a proven track record of doing so. We believe that Corvisa’s cloud contact center combined with ShoreTel’s go-to-market expertise in this area creates a very compelling combination.”.
ShoreTel will pay $8.5 million in cash to acquire Corvisa, which represents a minimal portion of the parent company's revenue, expenses, and employee base. The transaction is expected to close during March 2016, subject to customary closing conditions. The impact of the Corvisa acquisition is estimated to reduce ShoreTel's non-GAAP operating profit by approximately $3.5 million in the first 90 days. GAAP operating results will also be impacted by an additional $1 million related to temporary contract expenses in the March 2016 quarter. Based on current expectations and factoring in the impact of the Corvisa acquisition, ShoreTel expects to return to non-GAAP operating profit in the quarter ending June 2016. The company will provide further financial guidance reflecting both the M5 Australia acquisition, announced on November 4, and the Corvisa acquisition in its Q2 earnings.
