Investors are feverishly bidding up shares of Sangoma Technologies Corp. (TSX-Venture:STC) as the company announces its sixth acquisition in six years. This time, Sangoma acquired all the key assets of the Converged Communication Division from Dialogic Corporation.
Dialogic, one of the industry's true pioneers in the transition from PSTN to IP and Cloud based networks, is headquartered in Parsippany, New Jersey. The CCD division offers a full line of gateways and interface boards, with over 25% of sales in recurring services revenue, to customers around the globe.
The acquisition provides Sangoma with several strategic advantages, including: accelerated sales growth, expanded recurring revenue, stronger gross margins, increased profitability, about 45 excellent employees at a time when competition for talent is increasing, and complementary products that the Company understands well. In addition, this acquisition will add hundreds of larger enterprise/service provider/OEM customers, dozens of leading channel partners around the world, and strong supply chain capabilities which will allow Sangoma to significantly expand the scale and scope of its operations.
Terms of the transaction will be more fully described in subsequent disclosures as required, but in summary, Sangoma is acquiring all the key assets of the CCD division for approximately $5.7 million in cash, at closing, subject to customary working capital adjustments.
As mentioned off the top, investors are cheering today’s news by sending shares of STC up to their 52 week highs with shares currently traded at $0.88, up 11.39% in mid-afternoon trading.
Related Stories
