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 Channel Futures

Mergers and Acquisitions


monticello/Shutterstock

Microsoft Teams

Pure IP Buy Boosts BCM One’s Global Footprint, Microsoft Teams Chops

  • Written by James Anderson
  • April 5, 2023
Pure IP provides cloud voice services for Teams, Webex and Zoom – three platforms with which BCM One is growing its interoperability.

Managed communications service provider BCM One is buying U.K.-based voice provider Pure IP to expand its international footprint and shore up its interoperability with Microsoft Teams.

The companies announced on Wednesday that they have entered into a definitive acquisition agreement, expected to close in June, pending regulatory approval. The deal, whose financial details the companies did not disclose, will bring BCM One’s total employee count to more than 500. It will also add offices in the United Kingdom, New Zealand and San Francisco.

BCM One leaders said Pure IP allows BCM One to offer number availability in 137 countries, a boon for channel partners who want to sell to global, multisite accounts. Moreover, they say Pure IP’s synergies with Microsoft Teams, Cisco Webex and Zoom will help BCM One capitalize on growing market share they expect those three UC&C giants to get amid recessionary customer rationalization.

Forrest, Gary_Pure-IP

Pure-IP’s Gary Forrest

The acquisition marks BCM One’s ninth. Moreover, the company has used M&A to purchase capabilities across the voice and conferencing spectrum, including SIP trunking, white-label UCaaS and, in the case of Pure IP, public switched telephone network (PSTN) replacement.

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.

“The BCM One and Pure IP portfolios are very complementary and will provide a compelling proposition in addressing the changing needs of businesses around the world,” Pure IP CEO Gary Forrest said. “The synergy between the two organizations will provide a solid foundation for future growth and benefits to our combined customers.”

Drivers

BCM One recapitalized under Thompson Street Capital Partners in 2019. Executives at the time said they wanted to tackle the next-generation voice services market, with an eye for migrating legacy-based voice services to the cloud.

BCM One CEO Geoff Bloss said the recapitalization occurred under a three-fold charter going forward. In addition, Bloss said the team intended to expand geographically, move into more “next-gen communications,” moving away from voice resale and more toward owning its own platforms.

He said his team met with Gary Forrest in the U.K. in September and quickly saw a fit between the companies. Bloss said Pure IP aided BCM in all three of its charter pillars.

Zoom, Teams and Webex

As far as next-generation communications goes, Bloss said Pure IP offered an “extraordinarily strong platform” for PSTN replacement services. Pure IP has delivered voice for Microsoft Teams, Cisco Webex and Zoom.

Moreover, Bloss said the company played extremely well with Teams. For example, Pure IP has worked with Microsoft Operator Connect since the program’s inception in 2021. As a result, Pure IP has been integrating its voice solutions inside of Microsoft Teams.

BCM One’s Geoff Bloss

“The global infrastructure and flexibility to design both [Microsoft Teams] Operator Connect and Direct Routing solutions reinforce our leadership position as a next-generation communications and managed services provider,” Bloss said.

Moreover, Bloss said BCM One’s market research has led it to see the voice market moving further toward Microsoft, Cisco and Zoom over the next three to four years. Both channel partners and mid-to-large enterprise customers have reported that “recessionary factors” are leading businesses to consolidate their voice services into a single platform, he said.

“I think a lot of them are trying to rationalize their voice spend and voice complexity and trying to reduce … a mixed mode environment where they’ve got some voice services being handled – whether it’s cloud-based PBXes is or on-premises PBXes – and they’ve got the collaborative toolsets on the other side,” Bloss told Channel Futures. “I think more and more are seeing a convergence of trying to leverage the collaborative endpoints that they have in Teams, Zoom or Cisco WebEx and figure out a way to deliver PSTN services natively in those environments.”

JS Group CEO Janet Schijns said she’s seeing a similar trend of convergence.

Schijns, Janet_JS Group

JS Group’s Janet Schijns

“This deal further illustrates the fact that the UCaaS space continues to benefit from consolidation of smaller players into larger, channel-ready offers as the greenfield opportunities on the past few years have disappeared, and feature enhancement with platforms like Teams is where the industry is headed,” Schijns told Channel Futures.

International Presence

Bloss said Pure IP also directly improves on BCM One’s charter of expanding its international footprint. BCM One chief marketing officer Paula Como Kauth said Pure IP’s 137-country footprint adds credibility to partners selling BCM internationally.

“Our channel partners rely on…

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Tags: Agents Mergers and Acquisitions EMEA Strategy Telephony/UC/Collaboration

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