JSI Capital Advisors - The Monitor

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.