PBX and call centre provider Connection Telecom has bought FatBudgie in a bid to expand its offerings into the small and medium enterprise segment.
David Meintjes, Connection Telecom MD, explains that FatBudgie adds to current services offered by its Telviva brand as FatBudgie provides contended offerings, which are generally used for broadband. Telviva offers dedicated pipes that clients generally want for voice services, he adds.
The companies will continue to operate as separate entities, but the addition of FatBudgie to the Connection Telecom stable means customers can be matched to the product they seek, says Meintjies.
Meintjies says the deal increases the number of extensions serviced by its Telviva and FatBudgie PBX brands to 34 000 users at more than 2 000 sites. The combined growth rate of the brands is expected to continue to exceed 50% year-on-year, as both entities are well placed to service market demand.
Great potential
The move is part of Connection Telecom's growth strategy, which involves expanding its market focus into new segments. Meintjies adds the company has seen demand for services such as those provided by FatBudgie.
In addition, the deal adds about 30 staff members to the firm's operations, taking the total to 70, and bolstering its Johannesburg operation, says Meintjies. Connection Telecom has offices in Cape Town and Johannesburg.
Meintjies adds the company will continue to expand its partner base, as well as look at complementary offerings.
Connection Telecom was founded in 2004 to offer carrier-grade IP PBX solutions to Southern African businesses, and launched its cloud solutions, which now include business intelligence and video conferencing, in 2010.
Meintjies sees continued demand for Connection Telecom's services because only about 2% of new extensions run off cloud solutions, compared to a third in the US, according to BMI-TechKnowledge's 2012 research. He says SA lags the US market significantly, but growth is coming.
BMI-T expects the figure to rise to between 16% and 17% by 2017, notes Meintjies. He adds FatBudgie MD Sacha Matulovich brings marketing skills to Connection Telecom. "There's a lot of growth in that particular segment of the market."
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