What Onvoy Acquisition of Broadvox Means

Rich Tehrani : Communications and Technology Blog - Tehrani.com
Rich Tehrani
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What Onvoy Acquisition of Broadvox Means

The US Government’s Federal Reserve has kept interest rates low foronvoy-logo2.jpg longer than any time in my lifetime. It is unprecedented really. As a result, companies are able to grow quickly through acquisition. In fact they are being forced to in many cases to stay competitive. Most industries roll up to a few major players and the CLEC market is no exception. As you may know – acquisitions in this space like so many others are progressing at breakneck speed. It is not uncommon for me to have off-the-record conversations with CEOs of tech companies who tell me they were in talks to be acquired only to have the acquiring company acquired in the middle of the negotiations.

So cheap money and the desire for growth are pushing companies to acquire – especially if the target company has a solid base of customers generating cash flow. These are some of the reasons Onvoy just picked up Broadvox for an undisclosed sum.

My colleague Paula Bernier breaks the story here. In short – Onvoy is now the third largest CLEC by rate center – an enviable position. We look forward to watching the newly created entity and reporting on its progress. Getting back to the start of this piece… What does this mean? Well, as long as rates are cheap, companies will continue to be on a buying spree and there will be a race to be the biggest player in virtually all markets.


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