Mitel Announces Definitive Agreement to Sell DeTeWe to German ICT Systems Integrator Ostertag Group

By BCStrategies
22 Mar 2018

Strategic Move to Strengthen Both Companies as German Market Prepares for Digital Transformation

  • Mitel focuses on UCC market; disposes of non-core systems integration business; aligns go-to-market model across Europe
  • Ostertag strengthens position as a prime Systems Integrator in Germany for ICT and cloud solutions; adds scale, regional coverage and innovative technical skills
  • Maintains DeTeWe, as part of Ostertag, as a Mitel channel partner in Germany, enabling seamless continuity for customers and employees

Mitel and Ostertag Holding GmbH (HRB 732189) today announced that they have entered into a definitive agreement in which Ostertag will acquire DeTeWe Communications GmbH, Mitel’s direct systems integration business in Germany. As part of the agreement, all DeTeWe operations, employees and customer contracts will transition to Ostertag upon closing, which is expected in early Q2 2018 subject to regulatory approvals and customary closing conditions. Financial details of the transaction were not disclosed.

Strengthens Mitel and Ostertag as German businesses look for seamless communications to drive digital transformation

Building on their existing relationship, the transaction is a strategic and logical move for both companies. Mitel is selling its non-core system integration business, simplifying and aligning its go-to-market model across Europe as it focuses on the unified communications and collaboration market. Ostertag, a prominent platform-independent ICT systems integrator in Germany, is capitalizing on domestic market consolidation as it positions the company to become one of the market leaders in ICT services and consulting.

“This is a win-win that sets Ostertag and Mitel up for growth and success as businesses in Germany begin to pivot to cloud-enabled solutions to help digitally transform their operations,” said Rich McBee, CEO of Mitel. “With DeTeWe as part of the Ostertag Group, our mutual customers will continue to benefit from Mitel solutions, support and services, and will be ideally positioned to take advantage of advanced communications and collaboration solutions that will enable them to move to the cloud when and how they want.”

Seamless business continuity for customers and employees in Germany

The definitive agreement includes a transition services agreement, enabling seamless continuity of support and services for customers. Upon closing, DeTeWe, as part of the Ostertag Group, will continue to be a channel partner for Mitel in Germany, and all other existing suppliers.

“The market for communications solutions is growing rapidly, driven by increasing customer demand for integrated solutions that can connect employees wherever they are. Ostertag recognized this trend early and has successfully leveraged innovation, sophisticated ICT solutions and managed services, to outpace the market and win business with mid-sized and large companies as well as in key verticals like healthcare” said Marcus Haensel, Managing Director of Ostertag. "With DeTeWe becoming a part of the group, Ostertag will be even better able to offer customers a rich selection of innovative services and solutions.”

As a result of this transaction, Manuel Ferre-Hernandez, currently Country Manager of Mitel Germany, immediately becomes Managing Director of Mitel Germany. Once the transaction is completed, Christian Fron will join Ostertag Holding GmbH as a member of their executive management team, and will continue to operate in the role of Managing Director of DeTeWe.

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