Mitel acquires Gandalf's remote access offerings in $14.9m deal

Acquisitive communications company Mitel is set to ease Gandalf's financial woes by purchasing its remote access business for $14.9m.

Gandalf will concentrate on building up its services and maintenance businesses as part of its ongoing restructuring, designed to solve its recent financial problems.

Four product lines, and many of the staff attached to them, will move to Mitel. Neither company would comment on the possibility of lay-offs.

Mitel said it would be transferring those staff at Gandalf who are responsible for development, sales and marketing, manufacturing and support of the products.

The product ranges involved are the XpressStack, Xpressway, Xpress Connect and Lanline remote access ranges.

Mitel's president John Millard said the acquisition has boosted the company's strategy to focus on computer-telephony integration (CTI).

The move complements the products purchased in January as a result of the takeover of Global Village Communications, which also offered remote access devices.

Mitel's core product line consists of voice communications and voice/data products, plus public switching and other telecoms offerings.