Alteva, a provider of hosted unified communications-as-a-service (UCaaS), has sold its USA Datanet business to an undisclosed buyer for approximately $600,000.
USA Datanet offers hosted VoIP, SIP trunking and hosted Microsoft apps, among other things. The transaction, which Alteva described as the elimination of a “non-core platform,” will reduce operational overhead, creating internal efficiencies and streamlining the UCaaS business. The global UCaaS market is expected to grow from $2.52 billion in 2013 to $7.62 billion by 2018, at an estimated CAGR of 24.8% from 2013 to 2018, according to MarketsandMarkets.
“The sale of these assets is a win for both parties,” said David Cuthbert, Alteva’s president and CEO. “Although we will lose approximately $2 million of legacy revenue on an annualized basis, the non-core platform is not part of our ongoing growth strategy. The legacy costs associated with this platform have been negatively impacting the profitability of our UCaaS segment. This transaction is another positive milestone for Alteva as we continue our focus on growing the business and overall operational efficiency.”
Although the channel-friendly company expects to incur some nonrecurring charges related to the transition of the business during the remainder of 2013, the reduction of costs gained by this asset sale is expected to improve the overall profitability of the business by year-end, the company noted.
“UCaaS is a rapidly growing market and generates a lot of interest in the enterprise as well as in developer communities,” said MarketsandMarkets’ Piyush Sadhu, in a LinkedIn post. “UCaaS is a highly standardized, pre-integrated, permanently updated and ready to go service that enhances a client’s productivity and accelerates business processes and decision making while lowering costs.”
He added, “UCaaS will be one of the key enabling factors that will drive the market for unified communication. Furthermore, cloud based access is Unified Communications as-a-service making unified communication available for a wider range of organizations and end users. The shift from on-premises to cloud based unified communication model will be the key driver for unified communication to grow in the future.”