Sangoma Buys Ccommunication Division from Dialogic

Sangoma Buys Ccommunication Division from Dialogic Image Credit: Sangoma

Canada-based Sangoma Technologies announced the acquisition of all key assets of the Converged Communication Division(CCD) from Dialogic for approximately $5.7 million in cash.

The CCD division of Dialogic 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.

In addition, this acquisition will add hundreds of larger enterprise/service provider/OEM customers, dozens of leading channel partners around the world. The CCD product lines will become an integral part of the Sangoma portfolio over the coming year.

Following the acquisition, the General Manager of CCD, Jim Machi will join Sangoma and continue to lead the division. The transaction is expected to increase Sangoma's revenue to at least $53 million and EBITDA in excess of $5.5 million, for fiscal 2018.

Bill Wignall, President and CEO, Sangoma
This acquisition, our sixth in 6 years, is expected to add approximately $15 million of sales over the next twelve months. 

Bill Crank, CEO, Dialogic 
Sangoma offers the CCD customers, partners, and employees the best possible combination of product and services continuity, so we are very pleased with this outcome for all parties.

Ray is a news editor at The Fast Mode, bringing with him more than 10 years of experience in the wireless industry.

For tips and feedback, email Ray at ray.sharma(at)thefastmode.com, or reach him on LinkedIn @raysharma10, Facebook @1RaySharma

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