BroadSoft Buys Hipcom
GAITHERSBURG, Md. -- BroadSoft, Inc. (NASDAQ: BSFT) today announced it is extending its BroadCloud PBX service to the U.K. with the acquisition of Hosted IP Communications (Europe) Limited (HIPCOM), a market leading Communications-as-a-Service (CaaS) provider. Building upon the successful adoption of BroadCloud PBX in the U.S., this acquisition enables BroadSoft® to leverage HIPCOM's extensive cloud communications experience for the strategic expansion of its BroadCloud PBX service to the U.K.
The rapid adoption of hosted Unified Communications (UC) services by enterprises globally has created a need for service providers to explore alternative, faster service delivery methods of these UC services to their customers. BroadCloud PBX is a cloud infrastructure service delivery platform, whose UC capabilities service providers white label to take to market. BroadCloud PBX has the potential to speed time-to-market, and therefore accelerate time-to-revenue of these service provider branded UC services.
"Our service provider customers are seeking faster ways to deliver Unified Communications solutions to their users, driven by the significant growth in the demand by enterprises," said Michael Tessler, president and chief executive officer, BroadSoft. "Our customers have witnessed the accelerated time-to-market experienced by our U.S.-based BroadCloud PBX customers and they have expressed strong interest in this service. We believe our industry leading cloud service, BroadCloud PBX, will enable our customers to offer a comprehensive UC solution, quickly and cost-effectively."
HIPCOM currently provides innovative Unified Communications services based on BroadSoft's BroadWorks software to a broad customer base. The majority of HIPCOM's employees will join BroadSoft as part of its growing European team focused on managing its cloud operations across Europe.
"We believe the global opportunity for our BroadCloud PBX capabilities is very significant and it was critical we find a team with extensive cloud technology and infrastructure management experience for our expanding U.K. and European operations," said Scott Hoffpauir, chief technology officer, BroadSoft. "With the addition of HIPCOM and their experienced management team, we are confident we have the depth of knowledge in place to quickly take full advantage of our growth opportunities for BroadCloud PBX throughout Europe."
BroadSoft anticipates the acquisition will add approximately $500,000 in revenue to its estimated third quarter 2013 results and approximately $1.6 million in revenue to its estimated full year 2013 results. The acquisition is expected be non-dilutive to estimated third quarter 2013 and full year 2013 non-GAAP EPS.