November 3, 2014 - Fusion (NASDAQ: FSNN), a leading provider of cloud communications, cloud connectivity and cloud computing services, announced that it has closed on the purchase of all of the outstanding shares of stock of PingTone Communications, Inc., a provider of integrated cloud-based communications services headquartered in Herndon, Virginia.
The PingTone transaction is Fusion's third acquisition in twenty-four months, reflecting Fusion’s strategy to grow through acquisition as well as organically. The PingTone acquisition met Fusion’s acquisition criteria in several significant ways and is expected to be immediately accretive to Fusion's EBITDA. In addition, the acquisition of PingTone adds a loyal and growing enterprise customer base with high ARPU and positions the combined company to impact organic growth with a talented team of managers and staff to further help the company scale as PingTone is integrated into Fusion’s existing infrastructure.
The expected performance of the combined companies, and the integration of PingTone's experienced and highly skilled team of professionals, including a strong direct sales force, will allow Fusion to accelerate its organic growth plans as the company continues to pursue its acquisition strategy. The aggregate purchase price for the transaction is $10.0 million (net of cash received), consisting of $7.5 million in cash and $2.5 million in common stock of Fusion
Matthew Rosen, Fusion Chief Executive Officer, said, "Both companies are excited about the value we can create as we come together through this acquisition. It has been a pleasure to work on this transaction with Shelby Bryan, PingTone's Founder, Chairman and Chief Executive Officer. With decades of ground-breaking experience in communications, and having built, grown and sold successful companies as an entrepreneur and venture capitalist, Shelby's confidence in the combined company is especially gratifying. We're delighted that PingTone's shareholders share our vision in the company and look forward to increasing their value as we build the future."
PingTone's Shelby Bryan added, "We are impressed with Fusion's exceptional management team and their strategic plans for growing the business in the rapidly expanding cloud services industry. We believe in their mission to be the industry's single source provider for companies looking to access the many benefits the cloud brings to the enterprise. That is why, as PingTone shareholders, we are taking common stock in Fusion as part of the consideration. We look forward to participating in the combined companies' growth by lending active support to achieve its goals."
Q Advisors LLC, a Denver and San Francisco based investment banking boutique, acted as exclusive financial advisor to PingTone.