Two UC Providers Cash Out

Peter : On Rad's Radar?
| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Two UC Providers Cash Out

Phoenix-based Telesphere announced that Vonage would be acquiring them for $114 million in stock and cash. Teleshpere's Broadsoft-powered UCaaS revenue is just north of $40 million, so it is about 2.5x times revenue - a deal that many Cloud Comm Alliance guys will now be looking for.

This move by Vonage follows its acquisition of Vocalocity a year ago in order to enter the business voice market. The acquisition of Telesphere allows Vonage to enter the Enterprise space.

[RC will buy someone next for the same reason - acquisition is the fastest path to enter a market (in this case, Enterprise).]

Channel operations should remain unaffected, especially since Vonage hired the former Cbeyond channel head to run its channel a couple of months ago. It is curious what Vonage will do with Telespher's Broadsoft platform, since most of its users are NOT on that platform.

And the second deal would be Broadsoft based UC provider, PingTone, being bought by Fusion for $10 million. According to the press release, PingTone has 250 customers with $2900 ARPU!! With about $8 million in revenue. That multiple is much smaller than the Telesphere deal.

That's 2 more BSFT companies off the shelf. How many more will go?

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