Fusion Buys PingTone Communications for $10M
Fusion (FSNN) has added yet another cloud services provider (CSP) to its portfolio. The New York-based cloud communications company has acquired PingTone Communications for $10 million, which includes $7.5 million in cash and $2.5 million in Fusion common stock.
Fusion’s most recent acquisition comes roughly 10 months after the company acquired Broadvox’s cloud services business and represents one of several transactions that Fusion has completed over the past two years.
The cloud communications provider noted the PingTone addition “reflects the success of the company’s strategy to grow through acquisition as well as organically.”
“Both companies are excited about the value we can create as we come together through this acquisition,” Fusion CEO Matthew Rosen said in a prepared statement. “We’re delighted that PingTone’s shareholders share our vision in the company and look forward to increasing their value as we build the future.”
What does PingTone offer Fusion?
Fusion’s revenues rose approximately 63 percent on a year-over-year basis to $23.1 million in the second quarter of 2014, and the PingTone acquisition could help Fusion extend its global reach.
PingTone recorded $8.1 million in revenues over the last 12 months, as of June 30, 2014, and also has posted a 12 percent growth rate in the first nine months of this year.
The Herndon, Virginia-based CSP supports more than 24,000 customer endpoints and 250 business customers and may push Fusion closer to achieving its long-term cloud services market goals as well.
“We are impressed with Fusion’s exceptional management team and their strategic plans for growing the business in the rapidly expanding cloud services industry,” PingTone CEO Shelby Bryan said. “We look forward to participating in the combined companies’ growth by lending active support to achieve [Fusion’s] goals.”