June 13, 2017
In its history, Fusions Telecommunications has facilitated growth via acquisition. Always a firm scouring the market for synergy, whether through merger or acquisition, it found a new dance partner this week in XComIP. The product of the partnership, Fusion Global Services, LLC, is aimed at providing carriers with voice services globally.
The pairing reached an agreement this week; however, the transaction will close sometime before the end of Q3. The newly formed entity will be spearheaded by XComIP CEO Jay Adams, with sights set on leveraging each provider’s strengths to serve the global carrier community.
“Fusion and XComIP have earned reputations for exceptional service quality, flexibility and ease of doing business with over many years of experience,” said Jay Adams, CEO of XComIP. “We share the same vision for the future, and are leveraging our individual strengths to build an even more powerful and successful combined entity that will take us to the next level in the carrier business. We recognize the tremendous synergies between the customers and vendors of our organizations, and we see immediate opportunities for strong and profitable growth as our companies come together.”
When all is said and done, Fusion will own 60 percent of Fusion Global Services, LLC, with XComIP controlling the remaining 40 percent. Each company will give carrier services revenue, customers, vender agreements and a number of infrastructure and system assets to the new firm. Once the deal is concluded, Fusion’s Carrier Services division will be run as a separate entity from Fusion.
One of the primary results of the agreement is permitting Fusion to focus on its Business Services division, by removing the day-to-day management of its Carrier Services division. In addition, in utilizing XComIP’s network and capital, equipment operating expenses are expected to take a dip while increasing consolidated revenue and gross profit.
“The benefits to our newly combined entity and to Fusion on a consolidated basis are a ‘win-win’ from a financial and operating perspective,” noted Fusion CEO Matthew Mr. Rosen.
In making such a bold maneuver, Fusion is making a pragmatic decision. A firm that always seems to possess a crystal ball, the unified communications and cloud services provider has a way of building momentum with each exercise.
For now, the focus is Fusion Global Services, LLC, but only time will tell what tomorrow holds.
Edited by Alicia Young