Gamma continue their European expansion with acquisition of HFO

Even with Europe in lockdown, the ambitions of cloud communications providers have not slowed as they continue to execute on their growth plans. Gamma announced today (2nd July 2020) their acquisition of 80% of the shares of German provider HFO.

Gamma have built a formidable position in the UK communications market, dominating SIP Trunking sales in recent years and growing to one of the largest providers of cloud PBX services through their extensive channel. Recent acquisitions into new markets with the purchase of DeanOne in the Netherlands and Voztelecom in Spain have enabled them to expand internationally and replicate their model in new markets whilst their purchases of Exactive and Telsis in the UK have bought them contact center and Microsoft expertise to broaden their portfolio.

The German market has been seen as a huge opportunity for providers but many have not been able to tackle it successfully from the outside. NFON have been the poster child in the German cloud communications market and grown successfully into new markets and there are some other interesting providers in the market like Placetel, SipGate and StarFace along with the incumbents who are slowly migrating their bases to the cloud.

Gamma’s purchase of HFO gives them a real foothold in the German market with a solid brand, channel and customer base as well as complimenting their background in delivering SIP and cloud communications services. If Gamma can replicate their success in the UK in invigorating the channel to take and sell cloud communications services, the German market and channel could really benefit from this overall and hopefully drive faster penetration into the market.

With three acquisitions made this year, we expect that Gamma will continue on growing through M&A. This is a great strategic acquisition and gives them a huge market opportunity whilst executing on their international ambitions.

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