GAITHERSBURG, MD, August 13, 2013 – BroadSoft, Inc. (NASDAQ: BSFT) today announced it is extending its BroadCloud® PBX service to the U.K. with the acquisition of Hosted IP Communications (Europe) Limited (HIPCOM), a market leading Communications-as-a-Service (CaaS) provider. Building upon the successful adoption of BroadCloud® PBX in the U.S., this acquisition enables BroadSoft® to leverage HIPCOM’s extensive cloud communications experience for the strategic expansion of its BroadCloud PBX service to the U.K.
The rapid adoption of hosted Unified Communications (UC) services by enterprises globally has created a need for service providers to explore alternative, faster service delivery methods of these UC services to their customers. BroadCloud PBX is a cloud infrastructure service delivery platform, whose UC capabilities service providers white label to take to market. BroadCloud PBX has the potential to speed time-to-market, and therefore accelerate time-to-revenue of these service provider branded UC services.
“Our service provider customers are seeking faster ways to deliver Unified Communications solutions to their users, driven by the significant growth in the demand by enterprises,” said Michael Tessler, president and chief executive officer, BroadSoft. “Our customers have witnessed the accelerated time-to-market experienced by our U.S.-based BroadCloud PBX customers and they have expressed strong interest in this service. We believe our industry leading cloud service, BroadCloud PBX, will enable our customers to offer a comprehensive UC solution, quickly and cost-effectively."
HIPCOM currently provides innovative Unified Communications services based on BroadSoft’s BroadWorks® software to a broad customer base. The majority of HIPCOM’s employees will join BroadSoft as part of its growing European team focused on managing its cloud operations across Europe.
“We believe the global opportunity for our BroadCloud PBX capabilities is very significant and it was critical we find a team with extensive cloud technology and infrastructure management experience for our expanding U.K. and European operations,” said Scott Hoffpauir, chief technology officer, BroadSoft. “With the addition of HIPCOM and their experienced management team, we are confident we have the depth of knowledge in place to quickly take full advantage of our growth opportunities for BroadCloud PBX throughout Europe.”
BroadSoft anticipates the acquisition will add approximately $500,000 in revenue to its estimated third quarter 2013 results and approximately $1.6 million in revenue to its estimated full year 2013 results. The acquisition is expected be non-dilutive to estimated third quarter 2013 and full year 2013 non-GAAP EPS.
BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol, or IP networks. The Company's core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services. For additional information, visit http://www.broadsoft.com.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as “anticipate,” “expect,” “will,” “believe” and other similar terms and phrases and include statements regarding BroadSoft's ability to incorporate HIPCOM’s operations into its existing operations, the continued maintenance of the existing HIPCOM customer base, the expected benefits of the acquisition to BroadSoft and our service provider customers, BroadSoft's retention of the HIPCOM workforce, the expected benefits of a comprehensive UC solution to our service provider customers and the expected impact of the acquisition on BroadSoft’s financial results. The outcome of the events described in these forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to: the possibility that the anticipated benefits from the acquisition cannot be fully realized or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of HIPCOM’s operations into BroadSoft will be greater than expected and risks involving BroadSoft's ability to incorporate HIPCOM’s operations, service customers acquired through the transaction at historical levels and integrate and retain former HIPCOM personnel, as well as those factors contained in the “Risk Factors” sections of BroadSoft’s Form 10-K for the year ended December 31, 2012 filed with the SEC on February 27, 2013, and in BroadSoft’s other filings with the SEC. All information in this press release is as of August 13, 2013. Except as required by law, BroadSoft undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in BroadSoft’s expectations.
BroadSoft and BroadWorks are registered trademarks of BroadSoft, Inc. All other names are trademarks of their respective owners.
BroadSoft Public Relations
Brian Lustig, Bluetext
John Kiang, CFA, BroadSoft, Inc.