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Another Acquisition in VoIP

This M&A is in what I consider wholesale as the private equity firm that owns Onvoy, GTCR, is acquiring Inteliquent for about $800M, a 37% premium to Inteliquent’s closing stock price. Interesting, $90M in revenue for $800M.

Inteliquent was formerly known as Neutral Tandem, with an initial business plan to be an alternative tandem switching platform for CLECs and VoIP Providers. They re-branded after they bought Tinet adding network to their strong voice service. They sold Tinet to GTT in 2013 for about $55M. Inteliquent has been focused on voice and competing pretty well against both Level3 and Bandwidth.

“As the nation’s highest quality provider of voice and messaging interconnection services, Inteliquent is used by nearly all national and regional wireless carriers, cable companies, and CLECs in the markets it serves, and its network carries approximately 21 billion minutes of traffic per month.” They added some CPaaS capability as well. I have to wonder 21B in minutes and just $90M in annual revenue?

Zayo spun out its voice business as Onvoy. It was acquired by GTCR. Onvoy has acquired ANPI, Broadvox and Layered. Now it will combine Inteliquent into that mix.

These deals have made partners and customers nervous. The uncertainty seems to be a normal now.

These integrations are smooth and often have some customer facing problems. (See Frontier for how that works.) There is so much M&A that as a partner it is difficult to choose who to present to your client as a vendor.

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    Sales Stats That Will Make Your Head Hurt

    There are a bunch of sales stats HERE and at HUBSPOT.

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    ____ Peter Radizeski is a telecommunications consultant and analyst with RAD-INFO INC. Service Providers have called on RAD-INFO INC for assistance improving sales, managing online marketing efforts, channel sales enablement and overall company strategy. Contact RAD-INFO INC at 813-963-5884 or https://rad-info.net

    Sales Stats That Will Make Your Head Hurt

    There are a bunch of sales stats HERE and at HUBSPOT.

    30-50% of sales goes to the vendor that responds first.

    80% of sales require Follow-up calls after the meeting. 44% of sales reps give up after just 1 follow up call.

    Email is almost 40X better at acquiring new customers than Facebook or twitter.

    Salespeople who actively seek out and exploit referrals earn 4 to 5 times more than those that do not.

    Are you actively managing and coaching your salespeople to success? Do you know how?

    Jump on this webinar and get a foundation to work from.


    The one hour long presentation will be on November 8th 2016 at Noon Eastern.

    ____ Peter Radizeski is a telecommunications consultant and analyst with RAD-INFO INC. Service Providers have called on RAD-INFO INC for assistance improving sales, managing online marketing efforts, channel sales enablement and overall company strategy. Contact RAD-INFO INC at 813-963-5884 or https://rad-info.net

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    And Another Fiber Player Gets Acquired

    The big news this week was that CenturyLink is acquiring Level(3). Well, then Broadsoft bought VoIP Logic. And tofay FPL Fibernet gets picked off.

    The parent company of FPL FiberNet, NextEra Energy, has entered into a definitive agreement to sell FiberNet to Crown Castle International Corp. This is a strange move for Crown Castle, who owns 40,000 wireless towers and 18,000 small cells, but also 17,000 miles of fiber. The deal is worth $1.5 Billion. The transaction, which is subject to receipt of regulatory approvals and satisfaction of customary closing conditions, is expected to be completed in the first half of 2017.

    Just to note, Crown Castle owns fiber but doesn’t sell it. It uses dark fiber for small cell deployments and backhaul.

    In April 2015, “Crown Castle is acquiring Quanta Fiber (called Sunesys), a subsidiary of Quanta Services, for about $1 billion in cash, a deal that will immediately bolster the wireless tower company’s dark fiber capabilities for small cell backhaul services.” [fierce]

    ____ Peter Radizeski is a telecommunications consultant and analyst with RAD-INFO INC. Service Providers have called on RAD-INFO INC for assistance improving sales, managing online marketing efforts, channel sales enablement and overall company strategy. Contact RAD-INFO INC at 813-963-5884 or https://rad-info.net