M & A Rainmaker

Hot on the heels of Andrew Sage, VP Small Business Systems in the U.S., tweeting that Cisco and Wholesale Hosted voip provider NGT had been awarded ” Product of the year ” from Internet Telephony magazine “ for Outstanding SMB Service Innovation in Collaboration with Cisco “

http://www.ngt.com/news/?presspager=104&arc=&yr=2009&my=

it was announced that NGT had been acquired by Comcast for an ” undisclosed sum “. ( The announcement was in the small print of the first release aswell )

http://blog.tmcnet.com/blog/rich-tehrani/att/comcast-does-wholesale-voip—buys-ngt.html

There’s a number of interesting aspects of this:

1. Some time ago Cisco started partnering with Hosted Voip providers in the U.S. and the U.K. Some of these partners used front ended Call Manager at the core but Cisco also partnered with ” competitor ” platforms. This seemed a little strange until you realised that a lot of Cisco endpoints were getting shipped by these customers - in NGT’s case ”  150,000+ IP endpoints under management ” and the bundle provided used “  Cisco SPA 500 Series IP Phones “.  ” NGT is ( ??? ) the largest provider of wholesale hosted IP Telephony Communication solutions in the U.S. and NGT enables leading VARs, MSOs, Service Providers and Agents to provide nationwide, managed IP communication services to their customers through its proven channel ready solutions “. So NGT had an indirect model. It had sold to a number of ” Telcos “.

2. This might kick off a bit of a ” land grab ” as Telco’s realise that they have to have Hosted Voip in their portfolio. This applies to the U.S. and the U.K.

3. There are a number of Hosted Voip players in the U.K. - a couple using front ended Call Manager; others using a ” competitor ” core but Cisco endpoints and others using neither.

Watch this space because it is going to get pretty wild !!

I have a client who is looking for SaaS companies that might fit into it’s Buy and Build Portfolio. They will deliver solutions for the public and private sectors.

If you know of any such companies please let me know asap.

http://www.acquisitionsinternational.com/home.html
Useful site and book.

This is an interesting review from Icon Corporate Finance of Q2 M&A activity and mentions 365iT as being on the acquisition trail which it is for selected companies that fit the portfolio, such as the acquisition of 5i earlier this year and the very recent acquisition of 7 global.

http://www.iconcorpfin.co.uk/NewsEvents/M&ATechnologyReviewQ22009.pdf