Gamma finalises acquisition of Placetel from Cisco

23rd Sep 2024 11:31

(Sharecast News) - Gamma Communications, a provider of technology-based communication services across Europe, finalised its acquisition of BroadSoft Germany, trading as Placetel, from Cisco on Monday.

The AIM-traded firm said the strategic move would enhance its footprint in the German market, and reinforce its collaborative relationship with Cisco to accelerate business growth in the region.

It said Placetel, founded in Cologne in 2008, is a leading provider of Cisco Unified Communications as a Service (UCaaS) and collaboration solutions tailored for small office and home office (SOHO), and small to medium-sized enterprises (SMEs), across Germany.

The company operates through its own digital sales channels and a nationwide network of partners, serving around 260,000 seats across 35,000 businesses.

Gamma said the acquisition aligned with its broader strategy for expansion within Europe, identifying Germany as a key market for growth.

By integrating Placetel's established market presence, digital capabilities, and brand recognition, Gamma was aiming to expand its customer base and solidify its position as a leading provider of business communication solutions in Europe.

Under the terms of the transaction, Gamma acquired the entire issued share capital of Placetel from Cisco.

The acquisition was supported by a multi-year global licence purchase commitment with Cisco, as referenced in Gamma's unaudited results for the six months ended 30 June.

For the financial year ended 31 December 2023, Placetel reported unaudited revenue of around €28.7m under German GAAP.

Gamma said it was planning to disclose the provisional accounting for the acquisition in its full-year results for 2024.

At 1137 BST, shares in Gamma Communications were up 0.41% at 1,701p.

Reporting by Josh White for Sharecast.com.