Consolidators in the unified communications as a service space have been quite active lately, especially over in Europe. With us today to help us understand what is going on and why, are Q Advisors' Partner Gerry DeHaven and Managing Director Andy Monroe. Q Advisors is a global boutique investment bank that has been directly or indirectly involved in much of the consolidation in the UCaaS space on both sides of the Atlantic over the last few years.
TR: What has been driving UCaaS consolidation in Europe?
GD: There have been a bunch of regulatory changes that have knocked down some barriers for network connectivity, and other providers have come in and made cross-border options in the UCaaS part of the MSP model a lot easier. In general, just as we see here in the U.S., there is the need for larger players to continue to expand their solutions, but lack the internal DNA or, frankly, the time to go out and build the necessary skill sets organically. So they are looking for acquisitions in the managed services sector to really accelerate what they can do organically and, at the end of the day, generate a higher ARPU from their existing commercial customer base.
Read the full article for Q Advisors' insights and analysis.