Ooma has acquired OnSip, a unified communications service provider that supports small businesses. The price tag was $9.75 million in cash, or roughly 1X OnSip's annual revenues.This is technology M&A deal number 799 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.August 2022: RingCentral cut some employees, and 8×8’s stock fell sharply amid a bid to refinance $500 million in debt. July 2022: Avaya’s board of directors “removed” James Chirico from his role as president and CEO, and named Vonage veteran Alan Masarek to succeed him. The company also is planning cost cuts, though Avaya did not mention if the cuts involve layoffs. December 2021: Mitel confirmed layoffs after selling certain assets to RingCentral. Take a closer look, and you’ll notice that RingCentral invested in Avaya in 2019, and RingCentral acquired certain Mitel technologies in 2021.Elsewhere, UCaaS provider Intermedia canceled an IPO in 2021 amid “adverse conditions” in the IPO market. Shortly thereafter, NEC announced plans to invest $40 million in Intermedia.
UCaaS M&A Deal: About OnSip and Ooma
OnSip, incorporated as Junction Networks Inc., was founded in 2004. The company, based in Manhattan, New York, has 33 employees listed on LinkedIn. OnSip services -- spanning VoIP, unified communications and hosted PBX capabilities -- support more than 100,000 businesses. OnSip's previous owner was Intrado.Ooma, founded in 2003, is based in Sunnyvale, California. The company has 1. 2 million core users and 1,067 employees and contractors. Omma's annual revenue was $192.3 million in fiscal year 2022. Roughly 90% of that revenue is recurring, and customer retention is about 94%, according to a September 2022 presentation to financial analysts.In a prepared statement about the deal, Ooma CEO Eric Stang said:“We’re delighted to welcome OnSIP into the Ooma portfolio of business solutions. OnSIP serves a marquee collection of approximately 50,000 primarily small business users and is well-respected for the ease of use and flexibility of its services and strong customer support. We believe the acquisition of OnSIP is complementary to our strategy to extend our leadership in serving SMB customers and will accelerate overall growth of Ooma Business. We are also thrilled to expand our Ooma team with the addition of OnSIP’s highly experienced employees.”
