Sangoma has acquired NetFortris Corporation for $68m, strengthening its MSP (managed service provider) offerings.
The transaction has been completed with Sangoma purchasing all of NetFortis’ outstanding equity, using a combination of cash ($48.8m) and Sangoma common shares ($19.2m).
A further $12m will be paid subject to a 12-month performance review, which would make a total of $80m.
The acquisition of NetFortris adds new MSP capabilities to Sangoma’s cloud services, including managed network security, managed SD-WAN, managed network access, and monitoring.
Bill Wignall, President and CEO of Sangoma, said: “A critical part of our existing strategy, and of our competitive differentiation, involves providing customers with the widest set of cloud communications services in our industry, avoiding the need for them to buy five different services from five different vendors.”
“The acquisition of NetFortris further extends that strategy in such a perfectly natural manner. Not only can customers already get from Sangoma all the ‘aaS’ products they use today, but now they will also be able to obtain all the other cloud-based MSP services they know they need, such as managed network security, managed access, and managed SD-WAN.”
“This truly is one-stop shopping for our customers, and it taps into that very important new trend that so many of us in the industry see starting to emerge. I am most excited about this acquisition, our eleventh in eleven years because it demonstrates our innovative, unique, forward-looking vision and it continues to push Sangoma ahead in the market, further differentiating us from the competition.”
Sangoma provides a long list of reasons behind the acquisition. Customers are increasingly looking for all-in-one solutions from UCaaS, CCaaS, and CPaaS to network security, connectivity, and monitoring.
From the perspective of its channel partners, the acquisition will increase revenue, scale and positioning within cloud communications. Currently, NetFortris has an expected annualized revenue of over $50m.
NetFortris also brings a diversified customer base of over 6,000 clients, new talent, annual cost savings, and merger and acquisition opportunities.
Sangoma is not new to acquisitions, having acquired Star2Star, Digium, and others.
