Mitel has a definitive agreement to acquire ShoreTel, and I’m happy for all involved. We can argue all day if this was expected or inevitable, but the question I pose here is why weren’t there other bidders?
A quick look at the numbers shows an all cash deal of $530 million. That’s a lot of dough, but Mitel expects to realize $60 million in cost synergies within two years (mostly within one). That lowers to price down to $470 million. What’s Mitel get for that?