BroadSoft Boosts Cloud With Acquisition of VoIP Logic

October 31st, 2016 by · Leave a Comment

BroadSoft is celebrating Halloween with an inorganic move.  This morning they announced the acquisition of VoIP Logic, a wholesaler of VoIP and UC services that has traditionally focused on smaller service provider customers.  As with most of BroadSoft’s targets in recent years, they were also already a part of BroadSoft’s ecosystem with products built off of Broadworks.

VoIP Logic isn’t a household name, and they flew largely under the radar and targeted smaller service providers who need VoIP in their portfolio but don’t want or have the resources to roll their own. We interviewed CEO Micah Singer in some detail here on Telecom Ramblings last year.  When asked about competition with their suppliers (like BroadSoft), Singer responded “It’s hard for someone like BroadSoft to do a great job serving 20- of 25 among the largest telcos in the world and simultaneously 25 of the smallest ones.”  That’s a pretty clear expression of where they fit in the ecosystem, and of what BroadSoft is perhaps looking to gain through the acquisition.  In particular, BroadSoft cited their cloud wholesale offer and the control of the platform it offered those types of customers, which will be added to the BroadCloud portfolio.

Financial details of the acquisition were not available.  However, Broadsoft did say that they expect to add some $800K in revenue for the remainder of 2016 and that it would be dilutive to GAAP earnings by $0.01 per share.


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Categories: Mergers and Acquisitions · VoIP

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