Sangoma Technologies Corporation (TSXV:STC), a Markham, Ontario, Canada-based provider of Unified Communications solutions, acquired VoIP Innovations, a Pittsburgh, PA-based technology company that specializes in wholesale SIP trunking.
Under the terms of the deal, Sangoma paid an upfront consideration of US$36m, which consisted of US$30m in cash and US$6m in Sangoma common shares. In addition, there is a contingent consideration component of up to US$6m that will be payable in cash upon achievement of certain revenue milestones in the twelve months following the date of closing.
This would lead to a total purchase price of US$42m if achieved, on a debt-free and cash-free basis, subject to customary net working capital adjustments
The acquisition, Sangoma’s eighth in eight years, provides the combined company with several strategic advantages including: increased scale, a recurring revenue contribution that continues to grow, an entirely new product category in CPaaS, EBITDA margins, and a new sales channel.
Led by Jason Tapolci, co-founder, shareholder and CEO, VoIP Innovations specializes in wholesale SIP trunking offered primarily to resellers, service providers, MSPs, and call center customers across North America, utilizing a recurring revenue model. The company has over 1,400 customers and about 35 employees. It has also recently launched its new, strategic Communications Platform as a Service (or CPaaS) product that enables developers to add communication capabilities (such as voice, video, messaging, etc.) to their software and web applications without having to be communications nor networking experts.
VoIP Innovations’ employees will continue to work out of their current Pittsburgh office and will be led by Sebastian Kiely, VI’s President, who will report to Sangoma’s CEO, Bill Wignall.
Led by Bill Wignall, President and CEO, Sangoma provides Unified Communications solutions for SMBs, Enterprises, OEMs, Carriers and service providers. Its globally, scalable offerings include both on-premises and cloud-based phone systems, telephony services and Voice-Over-IP solutions, which together provide connectivity between traditional infrastructure and new technologies. The company’s products and services are used in PBX, IVR, contact center, carrier networks and data-communication applications worldwide.