- Sangoma has recently acquired Star2Star, as its biggest ever step in its transition to a CaaS business from a traditional communication hardware provider.
- Consolidated revenue after acquisition will increase by 60% on an annual basis with room for future organic growth, while EBIT margin is also growing steadily.
- Management has shown its ability to integrate acquired businesses well into Sangoma’s changing business model while generating synergies.
- The market has reacted negatively to the potential dilution effect due to the stock funded acquisition of Star2Star, but this was an overreaction.
- I am bullish on Sangoma as its intrinsic value is significantly below its market price.
For further details see:
Sangoma: Value Wins Over Dilution