While M&A activity in the fiber space has been heavy, it is not the only game in town. Yesterday, IP communications software provider Broadsoft (NASDAQ:BSFT, news, filings) announced its intention to buy a small outfit called Casabi. It’s not a big deal, just $1.95M, and it’s not really consolidation. Rather, Broadsoft seems to be buying technology to add to the SaaS/cloud portfolio it has been working on since the PacketSmart purchase last year. While I do get my fair share of rumors, I hadn’t heard about this one – but Peter Radizeski did.
Casabi’s field is that of cloud-based content and messaging applications. They enable service providers to add fixed line SMS, customized information services, and organizational tools to the products they offer consumers. BroadSoft could probably have developed similar functionality in-house, but the inorganic path can be faster when the right opportunity arises. That means that we’re not talking about headcount savings here, and Casabi employees will be joining Broadsoft – including Greg Pounds, the company’s CTO and co-founder.
One of Casabi’s bigger clients is apparently Comcast, certainly not a small name. The acquisition is expected to bring in $3-4M in revenue over the next twelve months, and to be neutral toward the company’s earnings per share over that period.
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