Unified communications (UC) specialist TelcoSwitch is not hanging around in its bid to expand the business, striking its second acquisition of the year.
The firm started 2021 by making it clear it would be using some of the millions it raised through Boost&Co and existing investors to underpin merger and acquisition (M&A) aspirations.
It followed that up in late January, picking up the OneVoice cloud-based hosted telephony platform from Worcester-based Qunifi for an undisclosed sum.
Just a couple of months have passed and the firm is back at the M&A table, this time picking up PBX Hosting for £4.5m.
The deal adds 32,000 active users and channel partners to the business. The management team and staff at Coventry-based PBX Hosting will remain in place.
The plan is to let PBX Hosting trade independently but take advantage of the depth of expertise and resources across TelcoSwitch in sales, support, DevOps and marketing.
Those resellers that work with PBX Hosting will also get access to the unified comms as a service (UCaaS) product portfolio that has been put together by the TelcoSwitch Group.
Russell Lux, CEO of TelcoSwitch, said the latest deal was part of an ongoing growth strategy. “Acquisition activity is key for us as we expand our UCaaS intellectual property and footprint of channel partners,” he said.
Stuart Gibson, PBX Hosting
“The PBX Hosting team have built a successful business, underpinned by great technology and a loyal customer base. We’re looking forward to welcoming them into the TelcoSwitch Group, and exploring the opportunity to add further value to their customers and partners through the wider product portfolio,” Lux added.
In response, Stuart Gibson, CEO of PBX Hosting, said there were a lot of similarities in the way that both businesses approached the market.
“Both our companies are extremely well aligned on ethos, technology and how we support our partners, which is why TelcoSwitch is the ideal home for PBX Hosting,” he said.
TelcoSwitch attracted £4m growth capital funding to help underpin M&A aspirations, staff recruitment, product development and greater support for its partner ambitions at the start of the year.
The firm raised £2.5m through Boost&Co, and the remaining £1.5m through existing long-term investors.
Its recent business performance, gaining a position as the 25th fastest growing technology company in the UK, according to the Sunday Times Tech Track 100, had seen year-on-year (YoY) climbs of 45% in seats on its UC platform. The business has also doubled its YoY revenues for the past three years.
On the M&A front, the business revealed in early January that it was engaged in three deals. Two of those appear to have come off, leaving market watchers waiting for the third.