Ribbon Communications sells Cloud-Based Kandy Communications Division to AVCtechnologies

This week, Ribbon Communications sold its cloud-based Kandy Communications division to AVCtechnologies. Ribbon was one of the first companies in its space, if not the first to realize how important it was to focus on generating recurring revenue.

In 2014, onstage at GENBAND Perspectives, then CEO David Walsh explained how tough it was to go from hardware to as-a-service revenue. He explained that companies put in a tremendous amount of investment for a very small return – but the return grows over time. In addition, the company trades large amounts of CAPEX revenue for small amounts of OPEX. On a graph, this looks like a fish.

This was 2014!!! It’s bewildering how ahead of their time they were.

The challenge was many of the company’s partners were fast-growing but not on the scale of Twilio customers – Silicon Valley names like Uber. This is not to take away from Ribbon – they did get customers such as AT&T, City of Los Angeles, IBM , and Etisalat (the largest telecom provider in the UAE). 

The fact that Ribbon was able to acquire so many companies, launch a sophisticated SaaS solution and simultaneously innovate across so many product lines – as a relatively small company, was quite impressive.

Now, however, Kandy has found a new home in AVCtechnologies – a provider of cloud-based UCaaS, Cybersecurity and IT solutions simple for over 900 enterprise customers, including 350+ managed service clients. Their mission is to be a single-destination partner for the white-glove delivery of reliable and secure, managed cloud services, hardware, and software.

AVC also acquired Stratos Management Systems (dba Computex Technology Solutions) in April of this year and recently announced the appointment of industry veteran and visionary Xavier Williams as Chief Executive Officer.

Williams served in a number of leadership capacities over the past 30 years at AT&T across multiple disciplines including finance, strategy, sales, product management, global operations, and human resources and, in his most recent role as President of AT&T’s Public Sector and FirstNet, Mr. Williams had profit & loss and operational responsibility for a global team of 4,000 professionals responsible for delivering solutions to federal, state, and local government agencies, colleges, universities, K-12 schools as well as for FirstNet, the $40+ billion nationwide wireless broadband network for first responders.

It will be interesting to see how Kandy does in its new home – we wish both Kandy and AVC well.

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Rich Tehrani is CEO of RT Advisors and a Registered Representative with and offering securities through Four Points Capital Partners LLC (Four Points) (Member FINRA/SIPC). RT Advisors is not owned by Four Points.

The above information was strictly a technical/business news article/review regarding the company(ies) mentioned. The information contained should not be considered and is not a recommendation to invest in or sell short the securities of the underlying company(ies).


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