M&A: Masergy Buys BroadCore, Moves Into Cloud Communications

July 10th, 2012 by · 2 Comments

Masergy Communications (news, filings) made an inorganic move today into a new line of business. The managed network services provider has acquired Broadcore Communications, which specializes in cloud communications. Masergy is clearly building up its cloud portfolio to better address the needs of enterprises, and may very well have other targets in mind.

By cloud communications, of course, we mean hosted PBX and UC services moved under the umbrella of the cloud where everything goes nowadays. In truth, this sort of stuff was ‘cloud’ before the new name caught on, but anyway. Broadcore uses a BroadSoft platform to target the mid-market enterprise segment.

Broadcore will continue to operate as an independent unit within Masergy, which makes sense given the complementary, non-overlapping nature of the business. I have long thought that Masergy might add cloud services to its portfolio, much as other service providers have been looking for the right mix. This deal looks like a nice strategic fit.

Masergy is one of several network and internet infrastructure businesses bought recently by the private equity firm ABRY Partners, which has been aggressively investing all over the sector in places like Sidera Networks, Telx, RCN, and Xand.  From here though it seems likely they will be looking to add depth to each of those holdings, which is precisely what Masergy’s purchase of Broadcore does.

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Categories: Cloud Computing · Mergers and Acquisitions · Unified Communications

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2 Comments So Far

  • UC Guy says:

    Amazed this make telcom ramblings. I think you generate more revenue than broadcore and have more employees.

  • Sol says:

    We were almost purchased by Masergy but they were a mere 80M light and were finally bought by a large player. Massive amounts of executive fighting, no true direction and a JR. Executive staff the light at the end of the tunnel is Broadcore Executive team taking over. MPLS like Masergy does it is getting tougher by the day.

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