M&A Deal Summary

NewSpring Capital and Sangoma Acquire Star2Star

On January 29, 2021, private equity firm NewSpring Capital and Sangoma acquired communications company Star2Star for 437M USD

Acquisition Highlights
  • This is NewSpring Capital’s 8th and Sangoma’s 4th transaction in the Communications sector.
  • This is NewSpring Capital’s and Sangoma’s largest (disclosed) transaction.
  • This is NewSpring Capital’s 148th and Sangoma’s 7th transaction in the United States.
  • This is NewSpring Capital’s 8th and Sangoma’s 1st transaction in Florida.

M&A Deal Summary
Date 2021-01-29
Target Star2Star
Sector Communications
Buyer(s) NewSpring Capital
Sangoma
Deal Type Add-on Acquisition
Deal Value 437M USD
Advisor(s) Q Advisors LLC (Financial)
Goodmans LLP
Troutman Pepper Hamilton Sanders LLP (Legal)

Target

Star2Star

Sarasota, Florida, United States
website
Star2Star is a privately-held provider of full-spectrum, internally developed, cloud-native communications services delivered via a high availability, multi-tenant platform. Star2Star targets the value market segments in business communications, including mid-market and enterprise size customers, through solutions that enable digital transformation. Star2Star’s offerings include a comprehensive suite of voice, contact center, collaboration, integration, video meetings, Communications Platform as a Service (CPaaS), and Desktop as Service solutions that work on any device from PC’s to desk phones to mobile softphones, all accessible from anywhere. Star2Star was founded in 2006 and is based in Sarasota, Florida.

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Buyer(S) 2

Buyer

NewSpring Capital

Radnor, Pennsylvania, United States

Investor Investor Investor Investor Investor

website

Category Private Equity Firm
Founded 1999
PE ASSETS 1.7B USD
Size Large
Type Sector Agnostic
DESCRIPTION

NewSpring Capital is a private investment firm focused on growth companies in the Mid-Atlantic US. The Firm can provide both growth equity and junior capital to prospective companies. NewSpring's target investment size for both mezzanine and equity financing is $2 to $5 million, although for new ventures, the Firm can commit up to $10 million. Sectors of interest include specialty manufacturing, technology, business services, information technology, life science, healthcare services, and medical devices. NewSpring Capital was formed in 1999 and is based in Radnor, Pennsylvania with an additional office in Short Hills, New Jersey.

DEAL STATS #
Overall 150 of 181
Sector (Communications) 8 of 8
Type (Add-on Acquisition) 1 of 3
State (Florida) 8 of 8
Country (United States) 148 of 177
Year (2021) 3 of 21
Size (of disclosed) 1 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-05 FlashParking

Austin, Texas, United States

FlashParking is the largest cloud-native parking technology platform and provides industry-leading digital and physical infrastructure. This platform creates seamless customer experiences and increases ROI while also connecting thousands of operators and asset owners with a real-time marketplace for digital mobility. FlashParking was founded in 2011 and is based in Austin, Texas.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-02-12 North Atlantic Ship Repair

Boston, Massachusetts, United States

North Atlantic Ship Repair is a provider of large vessel repair company specializing in repairing military/naval vessels and cruise ships North Atlantic Ship Repair was founded in 1995 and is based in Boston, Massachusetts.

Sell -
Buyer

Sangoma

Markham, Ontario, Canada

website

Category Company
Founded 1984
Sector Technology Hardware
Employees330
Revenue 224M CAD (2022)
DESCRIPTION

Sangoma is a provider of hardware and software components that enable or enhance IP Communications Systems for both telecom and datacom applications. Sangoma’s data cards, voice cards, gateways and connectivity solutions are used in leading PBX, IVR, contact center and data-communication applications worldwide. The product line includes both hardware and software components that offer a comprehensive toolset for deploying cost-effective, powerful and flexible communication solutions. Sangoma was founded in 1984 and is based in Markham, Ontario.

DEAL STATS #
Overall 9 of 10
Sector (Communications) 4 of 4
Type (Add-on Acquisition) 7 of 8
State (Florida) 1 of 1
Country (United States) 7 of 8
Year (2021) 1 of 1
Size (of disclosed) 1 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-08-24 Digium

Huntsville, Alabama, United States

Digium, Inc. is a provider of Asterisk® software, telephony hardware, and on-premises and hosted Switchvox business phone systems that deliver enterprise-class Unified Communications (UC) and UC as a Service (UCaaS) solutions at an affordable price. Digium, Inc. was founded in 1999 and is based in Huntsville, Alabama.

Buy USD28M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2022-03-29 NetFortris

Plano, Texas, United States

NetFortris provides secure cloud-based UCaaS, managed network solutions, hosted productivity applications, security, and specialized applications for enterprises of all sizes. The company's Cloud Solutions Platform, a proprietary cloud services management and analytics platform, provides the foundation for all NetFortris services, and delivers security, analytics, and integrated management for simple, scalable, and highly secure cloud communications operations. NetFortris was established in 1993 and is based in Plano, Texas.

Buy $80M
Mergr

Product

Company

Legal