Munich — Bird & Bird LLP has advised Gamma Communications plc (Gamma) on the acquisition of 80% of the shares in HFO Holding AG (HFO), one of the leading SIP trunk providers in Germany, which also includes the distributor Epsilon. There is an acquisition option for the remaining 20% for the next three years.
Gamma is a leading provider of Unified Communications as a Service (UCaaS) in the UK, Spain and the Netherlands and has identified Germany as a key target market as part of its expansion strategy. According to the company, the overall German market has around 36 million PBX extensions, but a cloud penetration of only around 6%. Thus, the market for cloud telephony is expected to grow steadily over the next few years.
Gamma’s goal is to develop and sell a market-leading cloud PBX solution through the channel to accelerate HFO’s growth in the emerging cloud PBX market in Germany. HFO also offers B2B mobile services through its subsidiary Epsilon Telecom — most recently selling over 100,000 connections per year. This also provides an opportunity for Gamma to sell a mobile cloud PBX product through this channel.
Advisor Gamma Communications plc: Bird & Bird LLP
Partner Stefan Münch (photo), Partner Stephan Kübler, LL.M., Counsel Michael Gassner, Associates Marcel Nurk and Marijana Simonova (all Corporate/M&A, Munich), Partner Dr. Ralph Panzer, Associates Julia Gottinger and Laura Schildberg (all Labor Law, Munich) Partner Dr. Henriette Picot, Partner Dr. Alexander Duisberg, Associate Goekhan Kosak (all Tech & Comms, Munich), Partner Dr. Markus Körner, Associate Maximilian Hillenkamp (both Trademark Law, Munich), Senior Counsel Valerian Jenny (Foreign Trade Law, Frankfurt), Partner Neil Blundell, Partner Simon Allport, (both Corporate/M&A) Legal Dirctor Nick Heap (Corporate Finance) all London, Associate Pauline Toet (Corporate, Canditate Notary, The Hague).
Bird & Bird has advised Gamma for many years, e.g. in 2014 on the IPO in London or recently on the public offering for VOZTELECOM OIGAA360, S.A. (“VozTelecom”). VozTelecom is one of the leading providers of cloud PBX solutions in Spain and, along with the major fixed and mobile operators, has the largest cloud PBX business. Neil Blundell, Partner in London, says: “We are delighted to support Gamma in their expansion in Europe. It’s a very exciting company and has performed incredibly well since going public. Bird & Bird has a superbly integrated international M&A group, and the teams in the UK, Germany, Spain and the Netherlands have worked first class to deliver these deals. We look forward to continuing to support Gamma on their future journeys, both in the UK and internationally.”