U.S. Markets close in 5 hrs 14 mins

Wired News - Fusion Telecommunications Acquires MegaPath

Stock Monitor: Telephone and Data Systems Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 14, 2018 / If you want access to our free research report on Fusion Telecommunications International, Inc. (NASDAQ: FSNN) (''Fusion''), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=FSNN as the Company's latest news hit the wire. On May 10, 2018, the Company announced that it has inked a deal to acquire MegaPath Holding Corp. (''MegaPath''), which is a provider of robust, fully-integrated suite of cloud services, for approximately $71.5 million. Register today and get access to over 1,000 Free Research Reports by joining our site below:


Active-Investors.com is currently working on the research report for Telephone and Data Systems, Inc. (NYSE: TDS), which also belongs to the Technology sector as the Company Fusion Telecommunications. Do not miss out and become a member today for free to access this upcoming report at:


Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Fusion Telecommunications International most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:


Deal Details

  • Up to $10.0 million of the price consideration is payable at Fusion's election in unregistered shares of Fusion common stock, which are priced at $5.78 per share.
  • The deal's valuation is approximately 5 times pro-forma adjusted EBITDA.
  • The Company will fund the cash portion of the consideration via borrowings under its First Lien Senior Secured Credit Facility, $62.0 million of which is currently held in escrow for this acquisition.
  • The transaction, likely to close within the next 90 days, is subject to the receipt of certain regulatory approvals and other customary closing conditions.

Strategic Benefits

The transaction contributes additional financial scale to Fusion's earnings, with approximately $70 million in annual revenue; 95% of which consists of contracted monthly recurring revenue (MRR), and adjusted EBITDA of approximately $15 million including anticipated cost synergies. The acquisition results in the addition of more than 8,000 small and medium business and large enterprise customers, with an average monthly revenue per customer (ARPU) of $750 and 1.0% monthly churn. It also adds around 45 quota-bearing sales representatives across direct and indirect sales channels, as well as a number of distribution partners, driving upselling and cross-selling opportunities and deepening Fusion's strong relationships throughout the Channel Partner sales channel.

MegaPath is an Ideal Fit with Fusion's Strategic Objectives as it Adds a Diverse, High-Value Business Customer Base

Matthew Rosen, Chairman and Chief Executive Officer (CEO) of Fusion, stated that this transaction is further evidence that Fusion is rapidly building a cloud services industry leader around its unique and compelling single-source strategy. MegaPath is an ideal fit with Fusion's strategic objectives as it adds a diverse, high-value business customer base; a team of cloud services experts; and an incremental financial scale, with a high percentage of MRR, high ARPU, and a low churn relative to industry averages. Rosen added that given the similarities between the businesses, the Company expects the MegaPath acquisition to facilitate the customer, operational, and financial integration of Birch, which was recently acquired, enabling it to drive its strategy more efficiently across the entire organization.

Combination of the Two Companies will Create Significant Value for Shareholders

Commenting on the acquisition, Craig Young, CEO of MegaPath, stated that Fusion's differentiated strategy, its high-quality integrated product suite, and its scalable platform are a natural fit with MegaPath's business and culture. MegaPath's participation in the equity of Fusion through this transaction underscores its confidence that the combination of the two Companies will create significant value for shareholders. Young added that MegaPath's customers will continue to benefit from the same high levels of service quality, customer care, and innovation from Fusion that they have come to expect from the Company.

Fusion's Recent Acquisition

On May 07, 2018, the Company closed its previously-announced acquisition of the Cloud and Business Services unit of Birch Communications Holdings, Inc (''Birch''). The acquisition was completed through a merger of a wholly-owned subsidiary of Fusion with and into Birch. The total enterprise value of this transaction was approximately $600 million, consisting of approximately 50 million shares of Fusion common stock and the refinancing of $444 million of Birch's indebtedness. The Birch acquisition was financed through borrowings under Fusion's new $680 million Senior Secured Credit Facilities, which included $640 million in term loans and a $40 million revolving credit facility.

About MegaPath Holding Corp.

Established in 1996 and headquartered in Pleasanton, California, MegaPath is a cloud communications and connectivity organization that empowers businesses to easily and securely communicate between their headquarters, employees, and business partners. MegaPath offers a comprehensive portfolio of Business Voice, Unified Communications, Business Internet, Private Networking, and Security Services.

About Fusion Telecommunications International, Inc.

Founded in 1997 and headquartered in New York City, New York, Fusion delivers a comprehensive suite of innovative, yet proven cloud solutions to businesses of all sizes. The Company's advanced, high availability service platform enables the integration of leading edge solutions in the cloud, including cloud communications, cloud connectivity, cloud computing, and additional cloud services such as storage and security.

Stock Performance Snapshot

May 11, 2018 - At Friday's closing bell, Fusion Telecommunications International's stock rose 1.08%, ending the trading session at $5.59.

Volume traded for the day: 254.08 thousand shares, which was above the 3-month average volume of 223.38 thousand shares.

Stock performance in the last month - up 10.91%; previous three-month period - up 26.76%; past six-month period - up 54.63%; and past twelve-month period - up 138.87%

After last Friday's close, Fusion Telecommunications International's market cap was at $183.58 million.

The stock is part of the Technology sector, categorized under the Wireless Communications industry.


Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the ''Author'') and is fact checked and reviewed by a third-party research service company (the ''Reviewer'') represented by a credentialed financial analyst. For further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the ''Sponsor''), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://active-investors.com/legal-disclaimer/.


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors