This week we saw two familiar names from the world of VoIP resurface for a bit of M&A action. Onvoy has announced an agreement to acquire Broadvox, boosting its national coverage to 80% of households nationally.
Onvoy is the former wholesale VoIP arm spun off by Zayo. It traces its name to the Minnesota network operator Zayo acquired in 2007, but amongst other things also includes the wholesale voice footprint assembled by 360Networks prior to that company's acquisition by Zayo. For its part, Broadvox also focuses on the wholesale side of things, offering a range of cloud communications proeducts.
Together, Onvoy and Broadvox will reach into 5,000 rate centers and serve 1,000 carriers across the country, making it the third largest CLEC by rate center coverage according to the PR. The two have substantial overlap, which will make for significant synergies after a suitable application of elbow grease.
The VoIP business has been seeing steady consolidation action over the past few years, with companies like Vonage (Vocalocity, Telesphere, SimpleSignal) and Mitel (Aastra, Mavenir, and an attempt at ShoreTel) building up nterprise and SMB marketshare. We don't hear as much from the wholesale side, but the drivers are similar.