Crexenxo has completed its $50m acquisition of cloud phone system provider NetSapiens.
The deal, first announced in March, sees Crexendo pay $10m and the rest in stock to NetSapiens shareholders.
Anand Buch, CEO of NetSapiens, said: “We have worked tirelessly to build NetSapiens to be the fastest growing UCaaS platform in the business.
“We knew that in order to keep growing market share we needed to find a partner who could help accelerate our growth.
“Crexendo proved to be the perfect partner; they share our passion for excellence; they share our desire to continue to improve our offerings and to keep providing services which are second to none to the NetSapiens community”
“Our teams will work closely together to continue to improve the combined company, to provide excellent service to all of our customers and to increase shareholder value.
Crexendo, which is based in Arizona, is a publicly listed company and announced its Q1 results last month.
Sales rose 17 percent year on year to $4.5m, with services making up $4.1m of the total figure. Operating profit swung from $181,000 in Q1 last year to a loss of $822,000.
Crexendo CEO, Steven Mihaylo, attributed the loss to costs associated with the NetSapiens acquisition.
Speaking as the acquisition closed, he said: “Today is a momentous day for Crexendo, NetSapiens, and our combined employees and our shareholders.
“We set out to build a truly great company; it has been an amazing journey building Crexendo to where it is today, but we truly believe we are at the start of an incredible new chapter in our growth.
“We have been very effective in our commitments and strategy to grow the Company; we were able to achieve profitability; we were able to organically up-list to Nasdaq; we were able to raise money in a public offering and we have now closed on a major accretive acquisition
“We will be able to take the best of the Crexendo technology and supplement it with the best of breed NetSapiens portfolio. NetSapiens will get the benefit of our deep telecom expertise which will benefit the entire NetSapiens community”
