Acquisition of PBXL Enables BroadSoft to Expand BroadCloud Footprint Into Japan; Positions Service Providers in Japan to Meet Growing SMB Demand for Cloud UC
GAITHERSBURG, MD--(Marketwired - Nov 13, 2015) - BroadSoft, Inc. (NASDAQ:BSFT, news, filings) today announced it is expanding its BroadCloud managed hosted service to Japan with the acquisition of PBXL, a provider of innovative cloud-based communication solutions. The acquisition enables BroadSoft to meet growing business demand in Japan for hosted unified communications services.
By leveraging BroadSoft's and PBXL's expertise delivering hosted UC services, service providers will be able to target a Japanese market of 5 million small businesses that cover over 70% of Japan's work force, a market that BroadSoft believes is underserved today.
"Through the acquisition of PBXL, we believe we are now positioned to expand our cloud footprint to a growth market eager to adopt cloud business services," said Michael Tessler, chief executive officer, BroadSoft. "We also believe BroadCloud offers service providers eyeing the SMB market in Japan a competitive differentiator and opportunity to grow customers and revenues."
For 2016, we expect the acquisition to contribute approximately $1.5 million in revenue and be approximately $0.02 dilutive to our non-GAAP earnings. For 2015, we expect the acquisition will be dilutive by $0.02 to our non-GAAP earnings due primarily to non-recurring costs associated with the transaction.
BroadSoft is the leading provider of cloud software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company's core communications platform enables the delivery of a range of enterprise and consumer calling, messaging and collaboration communication services, including private branch exchanges, video calling, text messaging and converged mobile and fixed-line services. For additional information, visit http://www.BroadSoft.com.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by their use of terms and phrases such as "enable," "can," and "believe" and other similar terms and phrases and include statements regarding BroadSoft's ability to incorporate PBLX's operations into its existing BroadCloud operations, the expected benefits of the acquisition and PBXL's product and service offerings to BroadSoft and its service provider customers, and the expected impact of the acquisition on BroadSoft's financial results. The outcome of the events described in these forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated by these forward-looking statements, including, but not limited to, the possibility that the anticipated financial and other benefits from the acquisition are not realized or are lower or take longer to realize than expected, BroadSoft does not successfully integrate PBXL's operations into its own or BroadSoft is unable to retain PBXL's customers or personnel, as well as those factors contained in the "Risk Factors" sections of BroadSoft's Form 10-K for the year ended December 31, 2014 filed with the SEC on February 25, 2015, and in BroadSoft's other filings with the SEC. All information in this press release is as of November 13, 2015. Except as required by law, BroadSoft undertakes no obligation to update publicly any forward-looking statement made herein for any reason to conform the statement to actual results or changes in BroadSoft's expectations.