Mergers & Acquisitions

Mergers & Acquisitions

October 12, 2011

Broadsoft to Acquire IP Communications Company Movial Applications

VoIP communication services company Broadsoft just got a little bit bigger as the company announced that it will be acquiring Helsinki, Finland-based Movial (News - Alert) Applications, a privately held client developer for IP communications services, in an all cash transaction.

By combining these two powerhouses, it is believed that there will be a fundamental change in the way in which individuals communicate since BroadSoft's (News - Alert) Unified Communications (UC) applications will now be in the hands of enterprise and consumer users, according to company officials.

"The proliferation of mobile broadband and explosive growth of smart mobile devices are dramatically changing the way individuals can communicate, opening new opportunities in our industry," said Michael Tessler, president and chief executive officer, BroadSoft, in a statement. “The Movial Applications purchase will position BroadSoft to enable our customers to capitalize on this market opportunity by tightly integrating the extensive capabilities already provided by BroadWorks and BroadCloud, with a superior user experience across a user's preferred communication device."

Movial Applications prides itself on designing and developing state-of-the-art user interfaces (UIs) and multimedia sharing applications that are optimized for a wide range of communications devices and IP-based communications applications. By relying on BroadSoft's BroadWorks(R) and BroadCloud(TM) communications services and Movial Applications' client design experience for PCs and mobile devices, global service providers will be able to deliver tightly integrated UC services, with a consistent user experience across a broad range of devices and operating systems, according to company officials.

BroadSoft will reap many benefits because of this acquisition including the fact that it will now enjoy strengthened unified and rich communications capabilities and be able to deliver a more seamless experience for end-users to access consumer and unified communications services such as high-definition (HD) voice, video calling and conferencing, instant messaging (IM), presence and web collaboration, across the multiple mobile devices they use every day.

Other benefits include: enhanced RCS, IMS, VoLTE capabilities; an extended commitment to a superior user experience; and an expanded commitment to ensure an intuitive user experience regardless of the end-user's preferred communication device.

The Movial acquisition also delivers several key benefits to BroadSoft’s customer base of more than 450 global service providers.

Service providers will enjoy: improved customer satisfaction, retention and ARPU; the ability for operators to expand their UC service capabilities to include the delivery of communications services to the user's preferred mobile communications device; superior Quality of Experience; and enhanced service provider brand.

"The promise of unified communications is the ability for enterprises and consumers to communicate and collaborate from anywhere, using their preferred communications device," said Scott Hoffpauir, chief technology officer, BroadSoft. "For more than 12 years, we have focused on designing and developing superior communications applications, and with Movial Applications, we believe the promise of UC will be fully realized."

The closing of the acquisition is subject to the satisfaction of various customary closing conditions. Under the terms of the agreement, BroadSoft will acquire Movial's client user applications, products, technologies and related assets, as well as certain employees.

BroadSoft anticipates the acquisition will be non-dilutive to non-GAAP earnings per share for 2012, according to company officials.  

Carrie Schmelkin is a Web Editor for TMCnet. Previously, she worked as Assistant Editor at the New Canaan Advertiser, a 102-year-old weekly newspaper, covering news and enhancing the publication's social media initiatives. Carrie holds a bachelor's degree in journalism and a bachelor's degree in English from the S.I. Newhouse School of Public Communications at Syracuse University. To read more of her articles, please visit her columnist page.

Edited by Jamie Epstein

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