Unified Communications Service Providers, M&A Activity 2015


Similar to what we have seen with other cloud-based service providers, Unified Communications companies have been merging in an attempt to gain market share and become more competitive. This market will continue to evolve as technology changes, new applications emerge, and more enterprise companies invest in updating their communication capabilities in the coming years. We look forward to seeing the evolution and who comes out on top.

Here is the recap of UC M&A activity in 2015:

Vonage purchased both iCore and SimpleSignal in an effort to help strengthen their UCaaS business for the Enterprise. iCore brings 85,000 customer seats with about $70M in annual revenue and SimpleSignal adds a base of 1,600 customers and additional white label partners to the mix.

8×8 acquired DXI Ltd, a UK-based UC and contact center solutions company for approximately $23.5M. This transaction is going to help 8×8 to boost European expansion efforts and further position the company as a leader in the cloud-based contact center space.

Impact Telecom merged with TNCI, the newly formed company will provide innovative cloud and voice telecommunications solutions to businesses and consumers in the US and Canada and wholesale carrier customers around the world.

ThinkingPhones purchased Contactive, a caller ID service for businesses and Fuze, a video conferencing company, to further strengthen their product offerings and expand the business.

Jive acquired Easy Office Phone, a Canadian VoIP provider to help with expansion efforts. Easy Office Phone works with over 200 partners to sell VoIP services across North America.

Momentum Telecom acquired Alteva, a company that focuses on Broadsoft-based cloud Unified Communications, for $28.7M. Alteva had hoped for more momentum with UC business growth and an acquisition had been likely for some time.

Broadsoft was busy last year, they purchased PBXL, a UC provider in Japan in order to meet growing business demand in that market. They also made an inorganic move to acquire one of their partners, Leonid Systems, a company that focuses on providing web portals for Broadsoft software. The third acquisition of 2015 was mPortal, a customer experience company for mobile, web, and other connected devices.

Arrow Business Communications purchased Orca Telecom, a Scottish UC provider, in an effort to help boost profits for the company.

The next M&A post will cover security providers. If you missed the last post, click here to view the Cloud Service Provider recap.

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