Sangoma Acquires Telecom Assets of Micro Advantage

Continues to expand its Hosted CaaS business in the Cloud

MARKHAM, ONTARIO—(Marketwire – November 30, 2016) – Sangoma Technologies Corporation (TSX VENTURE:STC), a leading provider of hardware and software components that enable or enhance IP Communications Systems for both voice and data, today announced the acquisition of the Telecom Assets of Micro Advantage Inc. effective December 1, 2016.

Micro Advantage Inc, based in Cleveland, is a Hosted Telecom and IT provider in the Ohio area, that provides a range of services including a Cloud PBX offering based upon Sangoma’s products and technology.

“Sangoma is very pleased that our long time partner, Micro Advantage Inc., has decided to join forces and bring its telecom customers to Sangoma.  We look forward to welcoming all the Micro Advantage Cloud PBX clients to Sangoma and providing them with the exciting new capabilities and 24/7 redundant cloud-based network of our PBXact Unified Cloud Communications solution,” said Tony Lewis, VP and General Manager Sangoma US.  Lewis continued, “The cutover will be seamless to all customers, who will initially see just a name change on their bills and who will then be transitioned over the next couple of months to Sangoma’s cloud service and infrastructure.  And while this may not be a huge transaction for Sangoma, it is indeed strategically important, as it further accelerates our cloud-based sales, adds significant customer relationships with contracted terms, and offers us very talented new staff to help our company with the increasingly critical nature of network operations and support. ”

Sangoma has worked very hard over the past few years to round out its product offering, expanding from a single product company to one with a broad portfolio of products for business telecom needs.  That portfolio now includes full solutions that meet all the Unified Communications need of a business customer, including connectivity products (such as gateways/SBC’s/telephony cards) to connect to the network of choice, the UC capable PBX itself, a full range of IP phones, and SIP trunking.  These solutions are available in both on-premise and cloud-based versions.  Sangoma is focusing on adding more recurring revenue to its business, and cloud based services are a key element of that strategy, as more and more customers choose to have their business communications provided to them in a CaaS (communications as a service) model.  As the company has previously indicated, the growth of its PBXact Cloud service may be bolstered through prudent acquisitions and this is the first example.

“The need to provide ever more complicated solutions to our customers was becoming difficult to manage for a small company with limited resources, so myself and the team here are delighted to be joining the Sangoma family, such that our customers will now get the benefit of a larger organization with more resources, the latest technology, and robust infrastructure,” said Scott Holtzman, CTO at  Micro Advantage.  “I am really excited to take on the responsibility of managing the network operations underpinning not just the Micro Advantage customers, but now all of Sangoma’s cloud based customers as well, including our hosted offerings of SIP trunks, fax solutions and cloud PBX.  Since Micro Advantage already uses Sangoma’s equipment to provide our hosted service, our customers will be seemlessly brought onto Sangoma’s 24/7 infrastructure and benefit from the highest possible quality of service.”

Full financial details of the transaction will be announced as required, but Sangoma paid initial consideration of US$350,000 and has entered into retention and earn-out arrangements for contingent consideration of up to a further US$300,000.  The acquisition will be accretive to earnings immediately.

About Sangoma Technologies Corporation
Sangoma Technologies is a trusted leader in delivering value-based Communications as a Service (CaaS) solutions for businesses of all sizes. Sangoma’s cloud-based Services include Unified Communication (UCaaS) business communications, Meetings as a Service (MaaS), Communications Platform as a Service (CPaaS), Trunking as a Service (TaaS), Fax as a Service (FaaS), Device as a Service (DaaS), and Access Control as a Service (ACaaS), Managed Internet Access, Managed Security, Managed SD-WAN. In addition, Sangoma offers a complete line of communications Products, including premise-based UC systems, a full line of desk phones and headsets, and a complete connectivity suite (gateways/SBCs/telephony cards). Sangoma’s products and services are used worldwide in leading UC, PBX, IVR, contact centers, carrier networks, office productivity, and data communication applications. Sangoma is also the primary developer and sponsor of Asterisk and FreePBX, the world’s two most widely used open-source communication software projects.
Cautionary Statement Regarding Forward Looking Statements

This press release contains forward-looking statements, including statements regarding the future success of our business, development strategies and future opportunities. Forward-looking statements include, but are not limited to, statements concerning estimates of future revenue, expected expenditures, expected future production and cash flows, and other statements which are not historical facts. When used in this document, the words such as “could”, “plan”, “estimate”, “expect”, “intend”, “may”, “potential”, “should” and similar expressions indicate forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements are based on the opinions and estimates of management on the date that the statements are made and involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other events contemplated by the forward-looking statements will not occur or will differ materially from those expected. Although Sangoma believes that the expectations represented by such forward-looking statements are reasonable based on the current business environment, there can be no assurance that such expectations will prove to be correct as these expectations are inherently subject to business, economic and competitive uncertainties and contingencies. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking statements contained in the management’s discussion and analysis include, but are not limited to changes in exchange rate between the Canadian Dollar and other currencies, the variability of sales between one reporting period and the next, changes in technology, changes in the business climate in one or more of the countries that Sangoma operates in, changes in the regulatory environment, the rate of adoption of the company’s products in new markets, the decline in the importance of the PSTN and new competitive pressures. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement and Sangoma undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by law. Readers are directed to Sangoma’s filings on SEDAR with respect to Management’s Discussion and Analysis of Financial Results for the basis of Sangoma’s reconciliation of EBITDA to net income as calculated under IFRS.

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Sangoma Technologies Corporation

David Moore
Chief Financial Officer
(905) 474-1990 Ext. 4107
dsmoore@sangoma.com
www.sangoma.com

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