The recent announcement that Sangoma Technologies, recognized for FreePBX and Asterisk, is set to be acquired by BRC Group Holdings for approximately $204 million, has sent ripples across the telecom community. Whether you’re running FreePBX, selling it, or supporting it for clients, there’s a looming question: What does this mean for the future?
The Acquisition Announcement
Based on content from Crosstalk Solutions
On September 28th, BRC Group Holdings confirmed their intent to purchase Sangoma for a total price of $24 million, reflecting almost a 47% premium over the current trading value. While shareholders still need to vote, and a few regulatory hurdles remain, it seems like a done deal with directors holding 27% of shares already on board.
Sangoma’s History and Financial Decline
Understanding Sangoma’s recent history sheds light on this acquisition. In 2015, Sangoma acquired Schmooze, the owner of FreePBX, and then Digium, the creators of Asterisk, in 2018. With these acquisitions, Sangoma held sway over the most widely used open-source phone projects globally. In 2021, it ventured further, buying Star2Star for $437 million, a stark contrast to the current acquisition price, hinting at financial struggles.
By 2026, Sangoma’s revenue dropped, showing a decrease of about 4%, with profits and cash flow also declining sharply. The company recognized a $68 million goodwill impairment, reflecting overvalued acquisitions, which contributed to an $81 million loss.
Who Is BRC Group Holdings?
BRC Group Holdings, formerly known as B. Riley Financial, is no stranger to telecom acquisitions. You might recognize some of their portfolio, like MagicJack, NetZero, Lingo, and Marconi Wireless. Their strategy involves purchasing recurring revenue businesses and maintaining them at basic functionality to extract profits effectively.
What Happens to FreePBX?
BRC has not provided explicit statements about the future of FreePBX and Asterisk. Their acquisition model suggests a focus on existing revenue streams, which truthfully don’t rely heavily on these open-source projects. BRC’s history indicates a tendency to place projects into maintenance mode, maintain a minimal team for essential updates, or potentially focus more on monetization through commercial avenues.
What You Should Do If You Run FreePBX
Immediate changes aren’t anticipated until the deal closes in early 2027. After that, open-source code remains available, though the support structure might change. Key actions include knowing your version, understanding the lifecycle of purchased modules, and ensuring robust backups.
In the coming years, consider migration strategies. While no urgent actions are required, planning for a potential transition when hardware refreshes are due is advisable.
For those relying on FreePBX, particularly through Crosstalk Solutions, rest assured that existing commitments stay intact. Our team is monitoring the situation closely while simultaneously exploring alternative solutions to continue providing top-tier telecom service.
Final Thoughts
Will FreePBX persist? The short-term forecast is stable, but the long-term trajectory might align with BRC’s pattern of less investment and more commercialization. If you’re vested in FreePBX’s path forward, communicating with service providers and preparing to adjust your strategy could offer peace of mind amidst these changes.
We invite you to share your thoughts on this acquisition and discuss potential alternatives or adjustments you’re considering for your PBX strategy. Onwards and upwards, as we navigate these telecom shifts together.
