Fusion Telecommunications International (News - Alert), Inc., has revealed that it has acquired Network Billing Systems, LLC. This adds over 5,000 customers of all sizes to Fusion’s corporate services business segment, and includes the acquisition of certain assets that NBS’s (News - Alert) affiliated company owns.
Fusion purchased NBS at a price of $19.6 million, over $17 million of which is in cash, the remainder in promissory notes and restricted common stock. Further details are in Fusion’s Current Report on Form 8-K, which was filed with the SEC (News - Alert) last week.
With this acquisition, Fusion anticipates a healthy revenue from $65 to $70 million annually, and $2 million in annual cost synergies, plus revenue from the cross-sale of the combined products and services. With the integration of the service and delivery structure from NBS, Fusion can rapidly scale its cloud services portfolio, and boost its growth while continuing to provide a robust platform.
"The management of both companies is excited about the benefits resulting from this transaction,” says Matthew Rosen, CEO of Fusion, in a statement. “In addition to adding significant contracted monthly recurring revenue, a large and growing customer base and positive adjusted EBITDA, the acquisition adds a very experienced and highly qualified management team and staff to Fusion's own experienced organization. Fusion also gains advanced back office systems that will drive operating and service delivery efficiencies, as well as a complementary voice, data and cloud services platform and network that will allow us to deliver our integrated cloud solutions faster and more cost-effectively."
This is a nice acquisition, and Fusion is feeling optimistic. NBS has a lot to offer, so Fusion Telecommunications will have plenty to add to their services, not to mention an increased customer base and other various assets. It paid a pretty penny for Network Billing Systems, but Fusion is confident that it was money well spent.
Edited by Jamie Epstein