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, announced it has
acquired the key assets of the VegaStream Group of Companies, a
leading UK-based developer of VOIP gateway appliances.
The business operations of VegaStream will be quickly integrated
into Sangoma's, with VegaStream staff being welcomed as part of the
respective Sangoma teams, the majority being in R&D and Sales
and Marketing. The VegaStream products will become part of the
Sangoma portfolio with customers rapidly benefiting from Sangoma's
reputation for efficient supply chain management and quick
turnaround of customer orders.
Sangoma is investing in new marketing, sales and product
development initiatives, and this transaction is further evidence
of such investments to drive ongoing growth. The acquisition of
VegaStream helps Sangoma to achieve several of its strategic
objectives: broadening its portfolio, adding to its distribution
network, delivering existing channel partners a more comprehensive
set of products, affording Sangoma an EU office to enable better
service to this critical part of the world in local time zones,
expanding its customer base and customer segments (including more
network operators), and penetrating more deeply into developing
regions, including significant upside in the key market of India
with some excellent large clients.
"VegaStream has some truly great products, people, customers and
distributors", said Bill Wignall, President and CEO of Sangoma.
Wignall continued, "As the IP Communications market evolves,
Sangoma is re-inventing itself in order to become a significant
player in more segments within that market. This acquisition
supports one of our key corporate messages, 'We are not just a
board company anymore'. For years, Sangoma has provided the
industry's leading portfolio of TDM to IP cards for use inside
servers, and we will continue to dominate that space. However,
external gateways which provide much of the same functionality but
reside outside the server as their own appliance, are becoming
increasingly popular, and we want to offer our customers both
options. External gateways expand our addressable market, can be
easily integrated into Virtualized and Cloud based solutions, and
so we hope to capture additional opportunities in this space as
well as in our traditional segment. We decided to accelerate our
entry to this market segment, using a 'buy versus build' decision,
adding the well-respected VegaStream products to our portfolio. I
expect this transaction will create value for Sangoma shareholders
and customers alike." We plan to continue our growth by both
organic means and a few more strategically selected
acquisitions.
Alexis Argent, Sales Manager at VoIPon in the UK stated, "As a
customer/partner of both Sangoma and VegaStream, we believe that
this acquisition will allow us to meet even more of our customers'
demands with a more comprehensive portfolio from a much stronger
partner in Sangoma. We look forward to being able to offer
enterprise customers and network operators their choice of either
internal cards or external gateways for their IP networking
needs."
This is an all cash purchase and no new shares are being issued
by Sangoma as part of this transaction. The company paid GBP 0.9M
(approximately $1.4M) in cash, subject to some minor closing
adjustments, for all of the key assets of VegaStream which were
partly purchased through an administration process in the UK. In
addition to the operating assets, Sangoma purchased the VegaStream
share of VSNPL, a JV in India. Sangoma expects the VegaStream
assets to begin to contribute to the company's earnings during the
second half of fiscal 2012 once it has integrated these operations
and ramped up production, and be accretive for fiscal 2013.
About Sangoma Technologies Corporation
Sangoma is a leading provider of hardware and software products
that enable or enhance IP Communications Systems for both telecom
and datacom applications. Enterprises, SMBs and Carriers in over
150 countries rely on Sangoma's technology as part of their mission
critical infrastructures. Through its worldwide network of
Distribution Partners, Sangoma delivers the industry's best
engineered, highest quality products, and offers the industry's
first lifetime warranty. The product line includes data and telecom
boards for media and signal processing as well as gateway
appliances and software.
Founded in 1984, Sangoma Technologies Corporation is publicly
traded on the TSX Venture Exchange (TSX VENTURE: STC). Additional
information on Sangoma can be found at: www.sangoma.com.
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 expected expenditures,
statements relating to 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.
Although Sangoma believes that its expectations reflected in
these forward-looking statements are reasonable, such statements
involve risks and uncertainties and no assurance can be given that
actual results will be consistent with these forward-looking
statements. Forward-looking statements are based on the opinions
and estimates of management at the date that the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those projected in forward-looking statements.
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 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 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. Although Sangoma
believes that the expectations represented by such forward-looking
statements are reasonable, 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, changes in technology, changes in the business climate,
changes in the regulatory environment, 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.
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.
Contacts: Sangoma Technologies Corporation David Moore Chief
Financial Officer (905) 474-1990 Ext. 107 dsmoore@sangoma.com
www.sangoma.com
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