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Acquisition Extends and Enhances Fusion’s Cloud Computing Offerings
NEW YORK, NY – October 05, 2015 — /BackupReview.info/ — Fusion (FSNN) a leading provider of cloud services, today announced that it has acquired the customer base, technology platform and infrastructure, and other assets of RootAxcess, LLC (“RootAxcess”). Chicago-based RootAxcess delivers a broad range of cloud solutions, including Infrastructure-as-a-Service (IaaS), cloud computing, cloud storage, cloud hosting, virtual data center, backup and recovery, and virtual servers, using both private and hybrid cloud infrastructure.
Fusion’s acquisition of RootAxcess closed on September 30, 2015 and was funded via its cash balances and revolving credit facility. Fusion expects to fully integrate RootAxcess by the end of the first quarter of 2016.
Highlights of the Acquisition
– Strengthens Fusion’s presence in the Cloud IaaS market, which industry research firm Gartner expects to grow from $16.5 billion in annual global revenues in 2015 to approximately $44.5 billion in 2019, reflecting a 28% compound annual growth rate
– Contributes a predictable, high-margin revenue stream of approximately $1.0 million annually, with nearly 100% monthly recurring revenues (“MRR”), approximately 1% churn, and a pro forma gross margin of approximately 70%.
– Adds a business customer base with average monthly revenue per customer (“ARPU”) of over $2,900
– Immediately accretive to Fusion’s earnings and cash flow
– Purchase price represents a valuation of approximately 3.0x pro forma LTM EBITDA
Matthew Rosen, Fusion’s Chief Executive Officer, said, “We are delighted to announce the acquisition of RootAxcess. With Fusion’s current suite of cloud computing solutions designed for large enterprise customers, the acquisition of RootAxcess provides us with a complementary set of cloud computing solutions for a broader range of businesses. We intend to integrate, enhance and expand RootAxcess’ regional infrastructure with Fusion’s advanced cloud platform and fully diverse and redundant nationwide network to support our growth strategy in the cloud. We believe that the integration of RootAxcess with Fusion’s extensive customer relationships, expertise in key industry verticals, and nationwide infrastructure will further differentiate Fusion as the single source for the cloud for businesses of any size. We anticipate significant upsale of the integrated solution to our existing base of 11,000 business customers.
“As we have stated, a key near-term objective for Fusion is to gain scale through acquisitions, complemented by organic growth,” Mr. Rosen continued. “This transaction represents an important step toward this objective as it significantly enhances Fusion’s ability to deliver robust, industry-leading cloud computing solutions to our existing customers and accelerates the expansion of the cloud computing segment of our business.”
“As a leading cloud services provider with an end-to-end product suite, nationwide next-generation cloud network, and a strong customer-focused culture, Fusion is the ideal partner to take the RootAxcess portfolio to the next level,” said Eric Wince, RootAxcess’ Chief Executive Officer. “Fusion’s management shares our vision of the transformational benefits of the cloud, and we expect this transaction to be highly beneficial to our valued customers who can continue to rely on robust, secure cloud computing solutions for their most mission-critical needs.”
Don Hutchins, Fusion’s President and Chief Operating Officer, said, “RootAxcess brings to Fusion a compelling customer and ARPU profile on top of a growing base of high-margin recurring revenues. The transaction is accretive to Fusion today, and we expect its contributions to the Company’s revenues, earnings and cash flow to grow meaningfully as we take advantage of cross-sell and upsell opportunities.
“We also welcome Jeff Cohn as Fusion’s Vice President of Cloud Infrastructure Solutions,” Mr. Hutchins continued. “Jeff is one of the founders of RootAxcess, serving as its CIO and CTO. He is a senior information technology executive with over 20 years of experience, having previously served as the CIO and SVP of Technology and Facilities at Playboy Enterprises, Inc., a $250 million publicly-traded company. There, he built and managed multiple 24/7 data centers around the world as well as HD broadcast transmission facilities, and was responsible for all corporate technology functions to follow Sarbanes-Oxley compliance. We are confident that Jeff will build upon the high standards of innovation and customer service he established at RootAxcess and look forward to his contributions i
Darrow Associates for Fusion
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