Sangoma Agrees to Acquire Paraxip Technologies
TORONTO, ONTARIO--(Marketwire - July 7, 2008) - Sangoma® Technologies Corporation (TSX VENTURE:STC), the premium provider of PC-based hardware and software for proprietary and open source networking and telephony solutions, today announced that it has entered into an agreement to acquire all of the shares of Paraxip Technologies Inc. for $4.8 million, payable as to $1.9 million in cash and 2.3 million Sangoma common shares. Paraxip is a leading developer of IP connectivity software that empowers the deployment of IP Telephony applications. Founded in 2003, Paraxip's customers include IBM, Genesys (a subsidiary of Alcatel-Lucent), First Data Corporation and the State of California.
The integration of Paraxip's SIP based NetBorder™ suite into Sangoma's product line provides Sangoma with a growth path that includes the Unified Communications market, IP contact centers, commercial interactive voice response solutions and other SIP-based telephony markets. The combined products and channels of the two companies considerably extend Sangoma's current addressable market range by providing support for all software-based telephony applications.
"This acquisition is part of Sangoma's strategy for addressing the expanding market for telephony applications of all types, particularly the segment of the market that demands proprietary, well supported solutions," said David Mandelstam, President and CEO of Sangoma Technologies. "The Paraxip transaction not only bolsters Sangoma's Windows-based offerings, but also represents a major advancement for the Open Source community. By combining Paraxip's gateway products with our premium hardware and drivers, we will provide the Open Source telephony community with a new level of compliance, reliability and scalability."
"The acquisition is a natural fit that opens up a sizeable Open Source market for Paraxip's gateway products and lets us leverage Sangoma's worldwide channel of distributors," said Serge Forest, Paraxip's President and CEO. "The deal provides Sangoma, in return, with highly differentiated connectivity solutions, including our patent-pending Call Progress Analysis technology, for servicing the fast-growing Contact Center market, as well as access to that market through Paraxip partners. We believe this to be a very synergistic combination."
In addition to at least four other nominees designated by the current Board of Sangoma, Paraxip shareholders will be entitled to nominate two individuals to the Sangoma Board at Sangoma's next annual shareholders meeting. The transaction is expected to close on or about July 14, 2008.
About Sangoma Technologies Corporation
Sangoma Technologies Corporation is the premium provider of PC-based hardware and software for proprietary and open source data and telephony transport solutions. The company develops and manufactures the most scalable and reliable voice and Wide Area Network data cards in the industry, including the award-winning Advanced Flexible Telecommunications (AFT) product line. Founded in 1984, Sangoma Technologies Corporation is publicly traded on the TSX Venture Exchange (TSX VENTURE:STC). Additional information on Sangoma can be found at: www.sangoma.com.
About Paraxip Technologies
Paraxip develops and markets connectivity products that empower the rapid and cost effective deployment of IP Telephony in the contact center and in the enterprise. Paraxip's flagship software product, NetBorder, leverages standard computing platforms to provide smart connectivity to sophisticated telephony applications. The patent-pending NetBorder architecture reduces deployment costs and allows IP Telephony solutions in the enterprise to seamlessly extend their reach to numerous external devices and networks. Additional information on Paraxip can be found at: www.paraxip.com.
Sangoma is a registered trademark of Sangoma Technologies Corporation. NetBorder is a trademark of Paraxip Technologies. All other trademarks are the property of their respective owners.
Caution Concerning Forward-Looking Statements
This news release contains forward-looking statements relating to the proposed acquisition of Paraxip Technologies Inc., including statements regarding the completion of the proposed transaction and other statements that are not historical facts. Such forward-looking statements are subject to important risks, uncertainties and assumptions. The results or events predicted in these forward-looking statements may differ materially from actual results or events. As a result, you are cautioned not to place undue reliance on these forward-looking statements.
The completion of the proposed transaction is subject to a number of conditions which may not be satisfied in accordance with their terms, and/or the parties to the share purchase agreement may exercise their termination rights, in which case the proposed transaction could be modified, restructured or terminated, as applicable.
The forward-looking statements in this news release are made as of the date of this release. We undertake no obligation to comment on expectations of, or statements made by third parties in respect of the proposed transaction.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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