Business Cloud News
Fusion has acquired PingTone for $10m

Fusion has acquired PingTone for $10m

Cloud services provider Fusion has just acquired PingTone, a provider of cloud-based communication and call centre services, for about $10m.

The move follows the company’s acquisition of Broadvox, another cloud-based communications provider, for $32m earlier this year.

Fusion said the acquisition would help expand the company’s reach into new sectors, particularly government, and bolster the company’s salesforce. PingTone, which was founded in 1999, has more than 24,000 individual customers and 250 business customers concentrated in the energy, healthcare, finance, emergency response and national defence industry segments.

The deal will see Fusion pay $10m for the company – $7.5m in cash and $2.5m in common stock.

“PingTone’s success in delivering the highest standards of quality and support is evident in the low attrition and customer loyalty of its enterprise customers in the Washington, D.C. area, all of whom demand advanced solutions and service excellence,” said Don Hutchins, Fusion’s president and chief operating officer.

“We believe that the combination will accelerate the companies’ organic growth, with Fusion’s nationwide cloud network and advanced cloud services platform extending PingTone’s geographic reach and expanding its cloud solutions offering,” Hutchins said.

Increased adoption of cloud computing and BYOD in enterprises is going to cause a big spike in the market for cloud-based comms according to some analysts. Frost & Sullivan believes that by 2020, revenues from hosted and cloud-based UC solutions will be close to that of on-premise solutions. The total market value is expected to surpass $70bn by 2020.