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Cable Technology Feature Article

August 13, 2013

BroadSoft Buys HIPCOM, Expands to the UK

By Paula Bernier, Executive Editor, TMC

BroadSoft (News - Alert) Inc. is a pioneer in outfitting service providers like the U.S.-based cablecos and telcos with software to expedite the delivery of IP-based unified communications to business users. Now BroadSoft is expanding the reach of its PBX (News - Alert) services across the pond. This new U.K. effort will be enabled in part by BroadSoft’s acquisition of a European communications-as-a-service provider called Hosted IP Communications (Europe) Ltd.

The value of the HICOM deal, which was announced today, was not disclosed. But the acquisition of HICOM is expected to bring BroadSoft an additional $500,000 in revenue to its third quarter 2013 results and $1.6 million in revenue in 2013.

“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 at 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.”

HIPCOM’s existing services are based on the BroadSoft’s BroadWorks platform, which should lower barriers to integration between the two companies.

BroadSoft already has had some experience with mergers and acquisitions. A year ago this month, BroadSoft revealed plans to buy Texas-based hosted business VoIP solutions outfit Adaption Technologies Ventures. That deal revolved around BroadSoft’s interest in Adaption Technologies’ infrastructure and Rialto Web-based service operating platform, which expedites the delivery and time-to-revenue of unified communications services.

Earlier this month BroadSoft announced its second quarter results, reporting $44 million in revenue, which was a 9-percent increase from the year-ago period, and a new loss of $3 million. Jim Tholen, chief financial officer at BroadSoft, said that a highlight of the quarter was the 25 percent year-over-year growth in the company’s software billings.

"Our second quarter performance was driven by the positive results our customers are experiencing with their hosted Unified Communications (News - Alert) services in the marketplace," said Michael Tessler, president and chief executive officer of BroadSoft. "There are many factors driving the demand for hosted unified communications, including the growth of mobile workers. This workforce evolution is pushing enterprises to seek business tools, such as hosted unified communications, that speed decision-making, allow remote teams to easily collaborate and ensure enterprises run efficiently."

BroadSoft’s vice president of marketing, Leslie Ferry (News - Alert), will be speaking in a session entitled “Why the Future of Business Communications is in the Cloud” at the upcoming ITEXPO event in Las Vegas.

Edited by Alisen Downey

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