Fusion (NASDAQ: FSNN), a provider of integrated cloud solutions to small, medium and large businesses, has acquired Fidelity Voice and Data (‘Fidelity’). Total consideration in the transaction, which closed on December 8, 2015, was $30.0 million consisting of $28.5 million in cash and $1.5 million in Fusion common stock.
Beachwood, Ohio-based Fidelity provides cloud voice, cloud connectivity, security, data center and cloud storage services to approximately 2,000 small, medium, and large business customers in the Midwest and throughout the U.S. Fusion expects to complete the integration of Fidelity by the end of the second quarter of 2016.
“The acquisition of Fidelity brings Fusion closer to its goal of building significant scale in the fragmented but rapidly growing cloud services market,” said Matthew Rosen, Fusion’s Chief Executive Officer (CEO). “Fidelity will also contribute to Fusion’s organic growth, accelerating Fusion’s progress over the last year in expanding its business. We intend to drive additional organic growth by cross-selling and up-selling Fusion’s comprehensive suite of integrated cloud solutions and leveraging the benefits of Fusion’s nation-wide network to Fidelity’s current customer base.”
Fusion’s advanced, proprietary cloud hosting service platform would enable the integration of leading edge solutions in the cloud, including cloud communications, cloud connectivity, and cloud computing.
“Fidelity’s strong business profile means that the acquisition is immediately accretive to Fusion,” said Don Hutchins, Fusion’s President and Chief Operating Officer. “We have also identified a range of specific cost savings opportunities which we expect to achieve as we integrate Fidelity into Fusion’s platform, just as we have accomplished with Fusion‘s four previous acquisitions. We anticipate that these synergies will contribute significantly to our cash flow over the coming quarters.”