Ooma to acquire Phone.com in $23.2m cash deal

Ooma, a smart communications platform for businesses and consumers, has signed a definitive agreement to acquire Phone.com, a provider of cloud-based business communications for small and medium-sized organizations, for approximately $23.2 million in cash, subject to customary working capital adjustments.

The planned acquisition comes swiftly on the heels of Ooma’s recent agreement to acquire FluentStream, another leading enterprise-grade business phone service for SMBs. This string of deals clearly signals Ooma’s aggressive strategy to expand its leadership footprint in the unified communications as a service (UCaaS) sector targeting smaller organizations.

The transaction, which has been approved by Ooma’s Board of Directors, is valued at approximately $23.2 million, subject to customary working capital adjustments. Ooma anticipates financing the acquisition using a combination of cash on hand and bank debt financing.

Financially, the deal is expected to be accretive to Ooma’s adjusted EBITDA and non-GAAP earnings per share immediately upon closing. Phone.com is currently projected to generate annual revenues between $22 million and $23 million, with adjusted EBITDA of $1.0 million to $1.5 million (prior to the realization of synergies). The transaction is expected to close in the fourth quarter of Ooma’s fiscal year 2026, pending receipt of required regulatory approvals and other standard closing conditions.

Founded in 2006 and headquartered in Newark, New Jersey, Phone.com has established itself as a robust UCaaS provider primarily focused on the needs of the SMB sector. The company successfully utilizes e-commerce, online marketing, and direct sales channels, primarily under the Phone.com brand, to reach its customer base.

Eric Stang, CEO,Ooma: ''We’re delighted and look forward to welcoming Phone.com into the Ooma portfolio of business solutions. This planned acquisition is intended to continue our strategy to extend our leadership in serving SMB customers. Phone.com’s established platform, strong online presence, and direct sales model fit well with Ooma’s strategy and will enable opportunities to capture synergies over time.''

Ari Rabban, CEO, Phone.com: ''We are pleased to join forces with Ooma, whose vision and capabilities align perfectly with our mission to provide smarter business communication solutions. I am extremely proud of our achievements and confident that Ooma’s commitment to quality, integrity, and steady growth will enable Phone.com to innovate and continue to deliver value to our customers.''

www.ooma.com
www.phone.com

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