Big M&A Update: Vonage, Broadvoice, ScanSource

Mergers and Acquisitions

After a bit of a slowdown in the first half of summer, M&A activity picked up in a hurry once the calendar flipped to August.

Last month we saw Vonage add to its long line of acquisitions in the past three years that will impact partners. Cox Business made another big step into managed services and cloud by buying RapidScale. ScanSource made a key CRM purchase that will affect both its and Intelisys’ partners.

But those were just a handful of the mergers and acquisitions involving major channel players in August. Scroll through the gallery below for 14 acts of consolidation that not only impact the suppliers and fellow channel partners with whom you do business, but potentially your business as well.

Looking for more M&A? Click here to see the biggest channel-impacting mergers and acquisitions from June and July. And don’t forget — you don’t have to wait for our monthly or bimonthly recaps. We have a page dedicated to all of the moving and shaking that’s affecting partners — as it happens.

Follow executive editor @Craig_Galbraith on Twitter.

Best Friends

Broadvoice says its purchase of YipTel is another big step into enterprise communications for the company.

Broadvoice gets YipTel's customer base, which includes midmarket and enterprise businesses. The latter's product set includes VoIP; audio and video conferencing; SMS/MMS automation; contact center; SD-WAN and more.

Learn about how existing agreements will be impacted.
Linux Foundation's Heather Kirksey
Cox Business-RapidScale

Cox Business made a big play into cloud and managed services with its purchase of RapidScale.

The deal "immediately" bolsters the cable company's transport and connectivity capabilities. RapidScale's cloud services include backup, server and desktop.

Here's more about how the companies will work together.
Ruckus' Bart Giordano

Vonage added video to its portfolio with the acquisition of TokBox, a Telefonica subsidiary, in a $35 million deal.

TokBox provides not only programmable video, but also WebRTC. The company's services allow businesses to add live video, voice and messaging to their websites, mobile applications and IoT devices.

“TokBox significantly expands our total addressable market, and it is a major step towards global leadership in cloud communications," Vonage CEO Alan Masarek said.

Read about the growing opportunity in video and WebRTC.
Datapipe's Robb Allen
Sprint-T-Mobile Concerns

There's still a long road ahead in regulatory proceedings for the proposed Sprint-T-Mobile merger, but plenty of groups are speaking out against it. One of the more important is the Communications Workers of America, the country's largest union representing communications workers.

The concerns they voiced last month included the potential of 28,000 job losses "with no countervailing benefits for the public." Sprint didn't respond to our request for comment. T-Mobile simply said the merger is "a job creator from day one."

Learn more about the union's concerns.
Happy Face Emoji

ScanSource and Intelisys partners are expected to benefit immediately from the former's acquisition of Canpango, a silver Salesforce implementation and consulting partner.

Canpango is a CRM specialist, but also brings to the table other Salesforce consulting-partner skills such as business-process consulting, training and education, application development, data migration and reporting.

Read why ScanSource's co-president told us the deal "made a lot of sense."
Ruckus' Bart Giordano
Cisco-Duo Security

Cisco announced its intent to buy Duo Security in a move to expand its intent-based networking strategy.

The eight-year-old Duo provides two-factor authentication, endpoint remediation and secure single sign-on tools. The vendor launched its first channel program aimed at MSPs last year.

Here's why Duo's CEO said the sale is the right thing for the company, partners and stakeholders.
Trans4mers' Mike Schmidtmann

Cloud Computing Concepts (C3) put the finishing touches on its acquisition of nonprofit South Florida Digital Alliance's (SFDA) service-provider division.

The for-profit service-provider division has been providing connectivity, colocation and internet access throughout South Florida since 2009. Its client lists includes several cities, universities, schools, nonprofits and large commercial accounts. The acquisition adds bandwidth, carrier relationships, colocation capacity and more to C3's portfolio.

Read what comes next.
Gartner's Thomas Murphy

Comodo, the digital web security provider, said it's buying CodeGuard, which offers website maintenance, backup and disaster recovery.

CodeGuard will continue to operate independently, but the acquisition combines its backup and recovery services with Comodo's secure sockets layer (SSL) certificates.

Learn what Comodo channel boss Michael Fowler means when he says the acquisition introduces an "entirely new category of services."
Interarbor Solutions' Dana Gardner

Advantix bought a managed mobility business from TeraNova, and the two companies are teaming to launch a mobility, telecom expense management (TEM) and IoT channel-enabled supplier for partners.

Two years after investing heavily in THINaer, an IoT business intelligence platform provider, Advantix was looking for "an industry peer that could help us take our channel programs to the next level. Then came the TeraNova opportunity.

Learn more about why the companies consider this to be "creating a powerhouse."
Linux Foundation's Heather Kirksey
Ribbon-Edgewater Networks

Ribbon Communications finalized its purchase of Edgewater Networks for $110 million. The buy allows Ribbon to offer its customers a complete core-to-edge product portfolio, as well as end-to-end service assurance and analytics offerings. They also get a fully integrated SD-WAN service.

Read more about how the acquisition gives Ribbon partners the ability to deliver expanded and comprehensive services.
Take the challenge
NTT Inc.

NTT Corp. has a busy job combining five of its subsidiaries into a single provider of IT services.

The merger is designed to tackle what the company calls brand confusion and a sort of auto-cannibalism that resulted from the subsidiaries selling similar services and competing against one another. Coming together are Dimension Data, NTT Communications, NTT Data, NTT Security and NTT's Innovation Lab. They'll go by the name NTT Inc.

Read more about how NTT America's partners will be impacted.
Dell EMC's Cheryl Cook

Not only is IT services and consulting company NexusTek celebrating its spot in this year's MSP 501, it's busy integrating three 2018 acquisitions into its fold — Cal Net Technology Group, Syndeo Technologies and Decision Consultants (DCI).

NexusTek's CEO told us that buying these companies – in Southern California, Arizona and New England, respectively – give it a coast-to-coast customer base and an opportunity for partners "to showcase their applicable products [and] solutions."

Learn just how big NexusTek has become as a result.
Following the cheese

Computex Technology Solutions, an MSP, made its fourth acquisition since 2012, by buying fellow MSP Synetra, which is based in Dallas.

Computex's president and CEO tells us the combination of the companies creates a "managed services powerhouse." Both are Cisco partners, and the acquisition is said to strengthen their relationship with the networking giant. Both businesses also are members of Ingram Micro's Trust X Alliance.

Read how the companies' "friendly relationship for decades" contributed to this important business decision.
Capterra's Tirena Dingeldein

Mimecast says its $88 million purchase of Solebit, the security software developer, adds to its lineup a differentiated approach to threat detection.

Solebit's technology identifies and isolates zero-day malware and unknown threats in data files, as well as links to external resources. This threat detection is designed to help customers face today's broad security landscape with evasion-aware, signature-less technology.

Mimecast's vice president of global channels and operations explains how this approach leads to better detection capabilities and faster processing.

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