Sangoma is set to acquire Star2Star for US$437m, in a move it says propels it into the “upper echelon” of the CaaS industry.
The acquisition is yet to be approved by Sangoma’s shareholders but has been unanimously approved by the board.
Bill Wignall, CEO of Sangoma, said: “Customers today are demanding an integrated buying experience for all their communications needs and the combination of Sangoma and Star2Star will satisfy that need with the broadest set of cloud-native CaaS and related solutions in the industry.
“This deal is incredibly exciting not only because it will generate scale in a growing, consolidating space, but also because by combining with Star2Star we will have completed our long-term evolution into a leading cloud services company”
“For many years, we have consciously pursued a strategy to transform Sangoma from a product business to one of the communications industry’s leading SaaS companies.
“This transaction ensures we can meet any customer’s preference, be it for purely cloud solutions, or for on-premise deployments, or a hybrid combination, all the way from small businesses to large enterprises.”
Star2Star is a privately-held developer of cloud-native communications services based in Florida, focusing primarily on mid-market and enterprise clients.
It has a channel ecosystem of around 650 partners and it’s product suite includes voice, contact centre, collaboration, video and CPaaS.
Sangoma said that the combined business will have an annual turnover of around $195m.
“We are thrilled to combine forces with Sangoma because we have so many complementary strengths,” said Norman Worthington, CEO at Star2Star.
“Sangoma was the perfect fit for us because they identified and appreciated our talented team, loyal customers and unique go to market approach.
“I’ve come to genuinely appreciate Bill’s vision for our combined companies. We share a view on how to profitably grow in this exciting market, a viewpoint that’s unique in our industry.”
The acquisition is subject to approval by shareholders, with a meeting set to be held “near the end of March”. If approved, the deal is expected to close shortly after.
