Sangoma Technologies (Sangoma Technologies Corporation, STC.V; $0.78), the trusted provider of Unified Communications (UC) solutions for small and mid-sized businesses (SMBs), enterprises, original equipment manufacturers (OEMs), and service providers (both on-premises and in the cloud), has recently announced its plan to acquire one of North America’s leading VoIP communications providers, VoIP Supply LLC for US$3.0 million
The acquisition will enable Sangoma Technologies to boost its online presence and strengthen its relationships with key resellers, systems integrators, and end users. Under the terms, the consideration will be settled in a mix of shares and cash and include an earn-out payment of USD 400,000 based on certain targets being achieved during the year after closing.
Sangoma + VoIP Supply: Helping Businesses Enhance Their Communications Solutions
As one of the industry’s most successful, respected, and recognized channel partners for both on-premises and cloud solutions, VoIP Supply helps Sangoma Technologies deliver a complete range of telecom products and services that will improve business communications and meet the needs of end user customers.
"We are always looking for ways to prudently add scale to our business," said Bill Wignall, the President and CEO of Sangoma. "VoIP Supply is one of our top channel partners in the US for both premise-based as well as cloud-based solutions, so their very strong online presence, web traffic, and e-commerce/inside sales model will be an excellent strategic addition to our business. Further, this acquisition will provide Sangoma even closer contact with key resellers, system integrators, and end-users, deepening our relationships with these important clients. I would like to personally welcome all the VoIP Supply employees to the growing Sangoma family and I look forward to contributing to VoIP Supply's long history of successfully serving the needs of their customers."
Ben Sayers, the founder and CEO of VoIP Supply, also expressed his enthusiasm about the acquisition."When I started VoIP Supply in 2002, it was with a vision of offering full communications solutions to businesses, by leveraging the growing importance of the internet to provide information and purchase options,” noted Sayers. "This was at a time when only 5-10% of people had broadband access in the US. Sangoma is one of the few companies in our industry that understands that vision and I'm very pleased to see VoIP Supply become part of a larger, thriving business with more resources, one that is committed to taking excellent care of our loyal customers and our dedicated staff," Sayers continued.
Following the closing of the acquisition, VoIP Supply will operate as a separate subsidiary of Sangoma with the appropriate autonomy that distribution businesses require. The company’s current President, Paula Griffo, will also continue to lead VoIP Supply on a permanent basis, thereby providing assurance and stability to their employees, suppliers, and customers.
“I would like to take this opportunity to strongly reassure our valued manufacturing partners and suppliers that our commitment to you is unwavering,” said Griffo. “VoIP Supply will continue to sell the broadest mix of products from the top manufacturers in the industry and after extensive discussions with Sangoma, I'm very pleased to confirm that our new owners fully embrace and support this strategy."
What Sangoma Stands to Gain
By bringing VoIP Supply to Sangoma’s fold, the company will have a number of opportunities to achieve its mission of expanding its online presence and helping businesses enhance their communication solutions. For VoIP Supply, this merger will also enable the company to leverage new and innovative products that will help them meet the growing needs of their customers.
"I am very excited about Sangoma's ownership bringing a new level of energy, commitment, and opportunity to the business," said Griffo. "Telecom is a competitive industry, so having the expanded resources and capabilities of a larger, growing, successful company like Sangoma is really going to help our excellent team here meet the needs of even more customers, in new and innovative ways."
Tony Lewis, the COO of Sangoma, had this to say about the merging of their companies. "Putting together a manufacturing and a distribution business requires a careful balance,” noted Lewis. "That is critical to ensuring that each company obtains the intended benefits, while still maintaining the independence that VoIP Supply needs to continue its long track record of proven success. This particular acquisition is quite unique to this specific situation in the US. In other countries, we rely heavily upon the local language, culture, reputation, and customers that our valued partners in those regions offer and look forward to continuing the strong, mutually beneficial relationships we've built together over many years."
After the acquisition, VoIP Supply will continue to offer support for current or existing providers as well as sell a wide variety of products from the top manufacturers in the industry. The purchase of VoIP Supply will close shortly after the end of Sangoma Technologies’ fiscal year 2017, but this will have no material impact on the company’s financial results for the current fiscal year, which will end this June 30. Although, it is expected that in fiscal 2018, the acquisition of VoIP Supply will add over $15m in revenue to Sangoma and will result in total revenue in excess of $45 million.
To learn more fully about the acquisition, visit VoIP Supply’s official website.
About VoIP Supply
VoIP Supply is one of the leading providers of VoIP phones and cloud services in North America. Based in Buffalo, New York, the company has been recognized as one of the most successful and respected channel partners, providing customers with a comprehensive range of telecom solutions including IP cameras and paging, networking equipment, VoIP gateways, phone systems, cloud services, and more. Established in 2002, VoIP supply continues to deliver unparalleled service and support to over 125,000 customers worldwide with its passionate employees and an unlimited number of VoIP products and solutions.
About Sangoma Technologies
Sangoma Technologies Corporation is a market leader in delivering unified communications solutions for SMBs, OEMs, carriers, and service providers. Founded in 1984, Sangoma Technologies Corporation has been providing businesses with robust and scalable offerings that include both on-premises and cloud-based phone systems, VoIP solutions, SIP trunking, Session Border Controllers, gateways, and more. Serving customers in over 150 countries, Sangoma delivers the industry’s best engineered unified communications solutions and telephony services that enhance levels of collaboration and productivity and deliver seamless connectivity between new technologies and conventional infrastructure.