GAITHERSBURG, MD--(Marketwired - Dec 17, 2013) - BroadSoft, Inc. (NASDAQ: BSFT)
- 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.
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.
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.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "potential," "enable," "estimate," "expect," and "will" and other similar terms and phrases and include statements regarding BroadSoft's ability to incorporate finocom operations into its existing operations, the continued maintenance of the existing finocom customer base, the expected benefits of the acquisition to BroadSoft and its service provider customers, BroadSoft's retention of the finocom workforce, the expected benefits of a comprehensive UC solution to our service provider customers and the expected impact of the acquisition on BroadSoft's financial results. The outcome of the events described in these forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to, the possibility that the anticipated financial and other benefits from the acquisition are not realized or are lower or take longer to realize than expected, BroadSoft does not successfully integrate finocom's operations into its own or BroadSoft is unable to retain finocom's customers or personnel, as well as those factors contained in the "Risk Factors" sections of BroadSoft's Form 10-K for the year ended December 31, 2012 filed with the SEC on February 27, 2013, and in BroadSoft's other filings with the SEC. All information in this press release is as of December 17, 2013. Except as required by law, BroadSoft undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in BroadSoft's expectations.