Onvoy, LLC announced on Tuesday, August 4^th its acquisition of Broadvox, LLC.  Onvoy is a leading provider of wholesale telecommunication services.  Broadvox is a CLEC that focuses on providing its customers wholesale VoIP services.  

Transactions Facts

• Deal is expected to close by the beginning of September.
• Broadvox serves a client base of approximately 500 VoIP, telecommunications carriers, and SMS-focused ISVs.
• Broadvox is one of the largest suppliers of VoIP innovative, origination, and termination messaging services in the United States.

Strategic Consideration

• Transaction will enhance coverage and employee base, which means more opportunities for customers.
• Combined company will reach approximately 5,000 rate centers and serve 1,000 carriers across the United States.
• Combined company will be able to meet the communication needs of numerous service and carrier providers within the United States.

JSICA’s Take

• Economies of scale will give the combined company the tools needed for future expansion and growth.
• Transaction should provide numerous synergies for the combined entity, partly due to an impressive customer portfolio.
• Deal adds to the consistent consolidation of the VoIP industry over the last several years.