#USA #Los Angeles #Communications #BRC Group #Sangoma

BRC Group Holdings to Acquire Sangoma Technologies

BRC Group Holdings, Inc. (NASDAQ: RILY), a leading diversified holding company, has made headlines with its recent announcement of a definitive agreement to acquire Sangoma Technologies Corporation (TSX: STC; NASDAQ: SANG). This strategic move is expected to significantly enhance BRC's communications portfolio, valued at an enterprise value of approximately $204 million (C$289 million).

Strategic Acquisition for Growth

The acquisition reflects BRC’s ongoing strategy of expanding its communications capabilities, further solidifying its position in the market. BRC's Chairman and Co-CEO, Bryant Riley, stated that this acquisition is deemed crucial for increasing recurring revenue and earnings power. With the inclusion of Sangoma, which serves over 100,000 business customers, BRC is not just acquiring a company but enhancing its ecosystem to drive long-term growth and profitability.

Sangoma, founded in 1984 and headquartered in Markham, Ontario, boasts a robust customer base, providing cloud-based, hybrid, and on-premises communication solutions. The integration of Sangoma's technologies, particularly its AI-enabled customer experience and contact-center solutions, will amplify the already existing strengths within BRC's offerings for both small and medium-sized enterprises (SMBs) as well as larger enterprises.

Financial Highlights and Projections

On a combined basis, the communications businesses of BRC, alongside Sangoma, reportedly generated an impressive $441 million in trailing-twelve-month revenue as of June 2026. BRC's own communication sector earned about $52 million in segment income during the same period. This demonstrates strong cash generation capabilities, making the acquisition a sound financial decision for BRC.

Riley emphasizes that they have successfully integrated five companies into this platform over the last decade, establishing operational stability and generating significant value. As BRC Telecom evolves to include Sangoma, the potential for escalating revenues and improved service offerings is substantial.

Details of the Transaction

Under the terms of this acquisition, Sangoma shareholders will receive $4.925 in cash along with 0.04767 of a BRC share for each Sangoma share held. This means that current Sangoma shareholders will benefit from a significant cash payout while retaining around 4% of BRC's pro forma shares post-acquisition.

The transaction is expected to be financed in part through a $215 million senior secured term loan facility, and both BRC and Sangoma's boards of directors have unanimously supported the deal. Completion of the deal will be subject to shareholder approval and customary closing conditions, with an anticipated closure no later than early 2027.

Conclusion

BRC Group Holdings is poised to continue its strategy of acquiring established communications businesses, ensuring stable growth in its communications portfolio. The acquisition of Sangoma not only represents an ideal continuation of this growth strategy, but also delivers enhanced capabilities and an extended customer base. It is a prime example of how BRC Group Holdings is leveraging opportunities in the telecommunications space to bolster its offerings and create value for shareholders moving forward.

For further information about the companies involved and the specifics of the transaction, stakeholders are encouraged to refer to the Canadian securities regulatory authorities and the respective investor relations sites of both BRC Group Holdings and Sangoma Technologies.