Ooma, Inc., a smart communications platform for businesses and consumers, today announced that it has acquired Junction Networks Inc., which does business as OnSIP, an innovative provider of cloud-based phone and unified communications services for small and mid-sized businesses, from Intrado Corp. for approximately $9.75 million in cash, subject to customary working capital adjustments. The transaction was completed on July 22, 2022.
The acquisition of OnSIP is expected to be accretive to Ooma’s adjusted EBITDA starting in the fourth quarter of the current fiscal year and make increasing contribution to Ooma’s profitability and cash flows as operational synergies are realized in the coming quarters. OnSIP is expected to add slightly more than $10 million in annual revenue to Ooma.
OnSIP (https://www.onsip.com/), founded in 2004, provides UCaaS solutions designed to make cloud communications approachable for small businesses – much like Ooma Office (https://www.ooma.com/small-business-phone-systems/) – allowing customers to utilize modern communications tools to enhance their business while streamlining deployment and ongoing management. OnSIP customers can choose between unlimited monthly plans and metered “pay as you go” plans.
Dedicated to providing white-glove customer support, OnSIP won the Excellence in Customer Service Award from Business Intelligence Group – which recognizes companies delivering distinctive customer service focused on setting up customers for success – for the fourth year in a row in 2022.
“We’re delighted to welcome OnSIP into the Ooma portfolio of business solutions,” said Eric Stang, chief executive officer of Ooma. “OnSIP serves a marquee collection of approximately 50,000 primarily small business users and is well-respected for the ease of use and flexibility of its services and strong customer support. We believe the acquisition of OnSIP is complementary to our strategy to extend our leadership in serving SMB customers and will accelerate overall growth of Ooma Business. We are also thrilled to expand our Ooma team with the addition of OnSIP’s highly experienced employees.”
Ooma will provide more information about the OnSIP acquisition during its fiscal second quarter earnings conference call, scheduled for today at 2 p.m. Pacific time. Please visit Ooma’s website at https://investors.ooma.com/events-and-presentations/default.aspx for information to join this call.
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