Sangoma Acquires Paraxip - More Canadian Consolidation

The Canadian tech/telecom vendor space has been busy of late. Last week, Ottawa-based IPTV middleware vendor Espial announced its acquisition of Kasenna.

Yesterday, Toronto-based Sangoma Technologies acquired Montreal-based Paraxip Technologies. Like Espial, it's a small deal between small companies - $4.8 million - but another nice example of low level industry consolidation.

I'm familiar with both companies, and have done work with Sangoma as a client. Sangoma has actually been around over 20 years, which is pretty rare for Canadian tech companies. So, they're far from being a startup, but are still pretty small - but they are publicly traded.

Sangoma is well regarded in the Open Source community as a leading provider of PCI cards for VoIP solutions. They compete head-on with Digium, and have many fans in their corner who feel they have a superior product. Paraxip is more of a software vendor that enables telephony connectivity for computers, and have a strong focus on contact centers, including integration with both Genesys and Microsoft Speech Server.

Overall, it looks like a good fit with both hardware and software elements in a single offering. The companies announced their own product integration last year, so they've already figured out how to work together.

It's not a huge deal, but I think it's a good deal, especially by making two Canadian companies stronger as one. It strengthens Sangoma's position by making them more of a complete solution provider for Open Source VoIP and the contact center market. As Open Source gains momentum for Unified Communications solutions, things could get interesting, as this deal gives Sangoma more capability to be positioned in this space, which would take them up a notch or two in the food chain.

Not much downside here, really, and I'm glad to see Sangoma making a move to become bigger, stronger and better.

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