Written by Doug | Dec 18, 2013 5:00:00 AM
German cloud service provider will expand BroadSoft's ability to capitalize on the enterprise transition to cloud-based unified communications services
Key Takeaways:
- Transaction enables BroadSoft to accelerate the availability of its BroadCloud unified communications services in the German market.
- Acquisition is expected to add approximately $2.5 million in revenue in 2014 and to be slightly dilutive on earnings on a non-GAAP basis.
- Total consideration for the acquisition is approximately $9 million in cash.
GAITHERSBURG, Md., December 17, 2013 – BroadSoft, Inc. (NASDAQ: BSFT) today announced it is further extending its BroadCloud® unified communications (UC) services in Germany with the completion of the acquisition of finocom AG, a leading provider of cloud-delivered UC services. Germany represents Europe's largest economy, with over 3.6 million companies and an annual telecommunications spend of just over 60 billion euros. Enterprises throughout Germany are quickly shifting from premise-based to cloud-delivered unified communications. MZA estimates that in Germany hosted UC users will increase to 2.3 million users in 2017, a 140 percent increase from 2012. BroadSoft® will leverage finocom's cloud service expertise to help deliver on this market transition with the introduction of BroadCloud UC into Germany. The finocom acquisition will serve as a focal point for BroadSoft's BroadCloud expansion into the German and Eastern European markets. "We are excited by the growing demand for our BroadCloud capabilities throughout Europe. With the addition of finocom, we have significantly increased investment in our cloud infrastructure in order to bring BroadCloud to Germany initially and, longer term, throughout Eastern Europe," said Michael Tessler, chief executive officer, BroadSoft. "We are thrilled to have such an experienced senior executive team join us to scale our European operations. This team will ensure we are enabling service providers to quickly and cost effectively offer their enterprise customers a comprehensive UC solution." BroadCloud is a managed service, whose unified communications capabilities service providers can white label to take to market. BroadCloud has the potential to:
- Accelerate time-to-market and, therefore speed time-to-revenue
- Reduce infrastructure and on-going support costs
"We could not be more excited about incorporating our technology and cloud management expertise with such a high profile company and for enterprises throughout Germany," said Peter Nowack, chief executive officer, finocom. "BroadSoft has a clear, well-defined growth strategy and we look forward to being a part of their cloud unified communications expansion." finocom's employees will join BroadSoft as part of its expanding European team.
About BroadSoft
BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company's core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services. For additional information, visit http://www.BroadSoft.com.
