Fusion acquires Herndon-based PingTone Communications
New York-based Fusion, a provider of cloud communications, connectivity and computing services, has closed a $10 million acquisition of Herndon-based PingTone Communications Inc.
Fusion purchased all of the outstanding shares of stock of PingTone, a provider of integrated cloud-based communications services.
Founded in 2001, PingTone had annual revenue $8.1 million as of June 30 and pro forma adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $2.1 million.
The PingTone transaction is Fusion's third acquisition in 24 months. The acquisition will be immediately accretive to Fusion's EBITDA, the company said.
When PingTone is integrated into the company, Fusion expects to achieve approximately $950,000 in annual cost synergies and additional revenue growth from the cross-sale and up-sale of the companies' combined products and services.
The purchase price included $7.5 million in cash and $2.5 million in Fusion common stock. Of the $10 million, $5 million was funded by additional financing provided through the issuance of 5-year senior notes to Fusion's existing lenders — Praesidian Capital, Plexus Capital and United Insurance Company of America.