Sangoma announces acquisition of Digium
Sangoma Technologies Corporation, a leading provider of unified communications solutions to SMBs, businesses, OEMs and service providers, has reached a final agreement on August 23, 2018, to acquire all outstanding shares of Digium, Inc. The transaction is expected to close on or about 31 August 2018, subject to customary closing conditions.
Digium is the creator of Asterisk, the world's most widely used open source communications software, along with Sangomas FreePBX. The company offers a comprehensive product portfolio, including
- Digium's cloud-based UCaaS platform (Unified Communication as a Service)
- the touch-sensitive telephone system Switchvox,
- a full range of IP phones and
- a full suite of Asterisk software and connectivity products.
Founded in 1999, Digium is a true pioneer in the communications market, launching the open source telecommunications segment and one of the best known and respected brands in the industry.
New milestone
"Sangoma and Digium have a long history of working together, competing in the market, and have gotten to know each other very well over the years, and we know from our relationship that the strategic fit between the two companies is truly outstanding," said Bill Wignall. President and CEO of Sangoma. Wignall added, "This transaction will result in very significant revenues, leading the market in our segment, significantly increasing recurring revenue and enabling us to make good use of our complementary businesses, and in times of industry consolidation, this transformative merger is yet another bold step for We would like to welcome you to the growing Sangoma family, and I would like to thank all of our Digium customers and partners around the world for supporting us in implementing our strategy for business growth and shareholder value enhancement assure everyone here at Sangoma remains committed to you, the Digium products you rely on, and to your continued success, and of course I want to assure the Asterisk community that Sangoma recognizes and values the value of Asterisk committed to keeping open source, we will Iteratively invest in its development and seek contributions from the broad base of developers that have led to its outstanding success. "
The acquisition, Sangoma's seventh in seven years, provides the combined company with several strategic benefits, including:
- greater growth through significantly higher sales
- higher recurring sales percentage
- stronger gross margins
- market leadership,
- a more complete product portfolio,
- a larger team of excellent employees at a time when competition for talent is high,
- a much wider network of complementary distributors around the world and
- a larger base of corporate and SME customers.
Upon completion of the merger, the company will employ more than 300 people.
"I've created Asterisk and Digium as a breakthrough in the communications industry," said Mark Spencer, founder and chairman of Digium. Spencer continued, "I am very proud that it has grown to a very successful position under its current ownership and management, and now is the time to take it to the next level as part of a larger, public company. Since both companies have been involved in the history of Asterisk since its inception in 1999, Sangoma is the natural home for the Asterisk project, and for many years, both companies have been working to make Asterisk better and more accessible. Reassuring the Asterisk community that Sangoma is dedicated to the project, I look forward to seeing the results of closer collaboration between these teams and the benefits to the community, which will now be part of a single company. "
transaction details
Under the terms of the agreement, Sangoma expects to pay a total purchase price of US$ 28 million on a debt-free and non-cash basis, subject to the usual adjustment of working capital. Digium generated revenue of approximately US$ 30 million for the year ended December 31, 2017.
Source: www.sangoma.com