Gamma makes a key acquisition in Germany

Gamma has acquired 80% of the issued share capital of HFO Holding AG, with an option to acquire the remaining 20% over the next three years.

HFO is a SIP Trunk provider in Germany with an excellent reputation for product quality and end-customer service. It has a strategy to build on this expertise in both the VOIP and broad business communications market and has recently started to sell Cloud PBX offerings through its extensive network of channel partners across the German market.

As part of its stated European expansion strategy, Gamma had previously identified Germany as a key target geography. With an overall market of c.36 million PBX seats (almost twice the UK market size) but a cloud penetration of only c6% (one of the lowest rates in Western Europe), the German market for cloud telephony is forecast to grow rapidly.

In the UK, Gamma has been able to convert a strong presence in the SIP Trunk market into a market leading presence in Cloud PBX. Gamma’s team will work with the experienced management team from HFO to replicate this success in Germany.

Like Gamma, HFO sells mainly through a network of resale and wholesale partners and dealers and also to end users directly.

HFO also provides B2B mobile services through its well-known Epsilon brand with over 100,000 connections per year that are sold through its resale partner and dealer network. This presents an opportunity to sell a mobile based Cloud PBX product through this channel, where HFO has an excellent reputation for customer service and delivery.

Andrew Taylor, Gamma’s Chief Executive Officer, commented: “The acquisition of HFO provides Gamma with a fantastic opportunity to enter the German market – one of the largest but under-penetrated Cloud PBX markets in Western Europe. We warmly welcome all of HFO’s staff and customers into the Gamma family and we look forward to working with them.”

Achim Hager, CEO of HFO, commented: “We are delighted to be completing the move to Gamma and see this as the next step in the development of our business. We believe that we can combine our experience of the German market with Gamma’s experience of taking Cloud PBX into the channel to develop a leading Cloud PBX business in Germany. It is great to have found a partner with similar values and approach.”

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David Dungay

Editor - Comms Business Magazine