News 3 min read

Fusion Acquires Broadvox’s Cloud Services Business

21 Jan, 2014
Acquisition Advances Fusion as a Leading Cloud Services Provider Fusion logoNEW YORK, January 6, 2014 - - Fusion (OTCQB: FSNN), an emerging leader in cloud services, announced today that on December 31, 2013, it completed the previously announced acquisition of Broadvox LLC’s cloud services business, which delivers cloud-based voice, unified communications and cloud connectivity to small, medium and large businesses, for an aggregate purchase price of $32.1 million in cash. The acquisition adds significant scale to Fusion’s existing cloud services business, which provides a full complement of cloud communications, cloud connectivity, cloud storage and security services to the business market. Acquisition Highlights
  • Strong Financial Profile
    • Contributes scale and performance
    • For the nine months ending September 30, 2013, the acquired business generated:
      • Unaudited revenue of $24.5 million, over 90% of which is recurring
      • $3.1 million in adjusted EBITDA, which includes approximately $1.8 million of expenses that are not expected to continue following the acquisition and have not been reflected in the adjustments to EBITDA
      • Over 65% gross margin
  • Growing Customer Base
    • 5,800 business customers
    • 1.2% average monthly churn year to date
    • Over $450 in ARPU
    • Strong focus on key verticals: legal services, hospitality and real estate management
  • Expanded Operations
    • Extends Fusion’s Cloud Network and Infrastructure
    • Adds nearly 100 employees to expand sales, marketing, and support efforts
  • Complementary Cloud Services Product Portfolio
    • Cloud-based voice
    • Unified communications
    • Cloud connectivity
  • Accelerates Organic Growth
    • Expands sales and marketing team and budget
    • Adds over 300 active distribution partners
    • Adds inside sales resources to focus on cross-sale and up sale of new cloud services to existing customers
For the nine months ended September 30, 2013, the acquired business generated $24.5 million in unaudited revenue, and $3.1 million in adjusted EBITDA, including approximately $1.8 million in expenses that are not expected to continue following the acquisition and have not been reflected in the adjustments to EBITDA.  Importantly, over 90% of the revenue is recurring, with more than 65% gross margin.  Based on the third quarter of 2013, Fusion’s pro forma consolidated revenue run rate, including the acquired business, exceeded $91 million.   The acquisition adds 5,800 small, medium and large business customers and more than 300 active distribution partners to Fusion. The combined companies’ customer base now totals approximately 10,000, with more than 500 active distribution partners.  Broadvox’s cloud services sales and marketing efforts, with a strong focus on legal services, hospitality and real estate management, add key new vertical markets to Fusion’s own strategy of providing specialized, market-based solutions to important verticals, including healthcare.  With the acquisition, Fusion is adding nearly 100 employees to greatly expand its sales, marketing and support functions. Fusion expects to realize approximately $2.3 million in cost synergies upon completion of the integration of the Broadvox cloud services business.  Approximately half of these savings were realized at the date of acquisition, with the remainder expected to be achieved over the next 12 to 24 months.  The combined businesses will bring expanded scale and resources to Fusion’s sales and marketing efforts with the addition of a strong inside sales and marketing team, increased spending on marketing and the cross-selling of the company’s combined products and services.  The anticipated performance of the combined business and the integration of advanced service and delivery infrastructures, network facilities and staff will allow Fusion to more rapidly scale, enabling the company to accelerate its organic growth plans while providing a robust platform for additional acquisitions. Matthew Rosen, Fusion’s Chief Executive Officer, said, “We are extremely pleased that the Broadvox cloud services team, partners and customers have joined Fusion. This transaction, our second acquisition of a cloud services business in a little over a year, brings us one step closer to realizing our vision of becoming the largest and most successful provider of cloud solutions in a rapidly growing market. The acquisition also continues the effort begun with last year’s acquisition of NBS to identify established cloud services companies with strong management teams to help build our company. We were gratified by the support we received for this transaction as reflected in the approximately $44.0 million in financings announced earlier today from new and existing shareholders, Directors, Advisory Board members, and from financial partners such as Praesidian Capital, Plexus Capital, and several other notable institutions and individuals.” Don Hutchins, Fusion’s President and Chief Operating Officer, said, “We have been working with Broadvox and their great management and staff on the integration effort for more than four months. The experienced professionals who are joining Fusion’s cloud services team share the same culture and commitment to service excellence, and we are all excited about the substantial opportunities for growth that this transaction provides.  Our integration planning confirmed our belief that the combination of our businesses will help us achieve our financial goals, build scale and deliver leading edge cloud solutions to our expanding base of customers.” Fusion has launched its new cloud services website, www.fusiontel.com, to coincide with the announcement of its acquisition of Broadvox’s cloud services business. CEA Capital Advisors acted as Fusion’s advisor in the acquisition.
Cloud Communications Alliance

Related Posts

Browse these posts below for the latest in cloud communications news and insights.

18 September 2026
Zoom unveils AI-powered revenue OS to unify buyer intelligence, customer conversations, and revenue execution
Debuts Common Room availability through Zoom and rolls out new Zoom Revenue ...
18 September 2026
XTIUM Named a Special Award Finalist of Informa’s MSP 501 AI MSP of the Year Award for 2026
XTIUM earns recognition as a 2026 AI MSP of the Year finalist for its AI-native ...
18 September 2026
TNS and UCP Partner to Expand US Unattended Payment Capabilities
TNS and UCP collaboration expands access to unattended payment expertise across ...

Find The Top Cloud
Communications Companies

We’ll guide you to the best provider for your needs.

Become A CCA Member Today!

Join over 150+ cloud communications companies already growing with CCA.