magicJack VocalTec Inks Deal to Buy N. American Telecom Corp. Broadsmart

magicJack VocalTec Ltd (NASDAQ:CALL) entered into an agreement to acquire substantially all of the assets of North American Telecommunications Corporation Broadsmart, a hosted UCaaS provider for medium-to-large multi-location enterprise customers. The purchase price for the acquisition is $40 million, consisting of $38 million in cash and $2 million in ordinary shares of magicJack. There is also a $2 million earn out tied to the achievement of 2016 revenues of $15.6 million. The acquisition is expected to close in the next 30 days.

The stock is down 6.23% or $0.54 after the news, hitting $8.12 per share. About 299,071 shares traded hands or 258.59% up from the average. magicJack VocalTec Ltd (NASDAQ:CALL) has risen 12.79% since August 7, 2015 and is uptrending. It has outperformed by 15.58% the S&P500.

magicJack VocalTec Ltd., together with its subsidiaries, operates as a cloud communications company that provides voice-over-Internet-Protocol (VoIP) services in the United States. The companyÂ’s products and services allow users to make and/or receive free telephone calls to and from where the customer has broadband access to the Internet.

It offers magicJack VoIP devices that enables customers to receive phone service for their home, enterprise, or while traveling; and additional products and services, which include voice apps on smart phones, as well as the magicJack PLUS and magicJack GO that have their own CPU and connects a regular phone directly to the userÂ’s broadband modem/router and function as a standalone phone without using a computer. The company also provides magicJack APP, an application that allows users to make and receive telephone calls through the computer using a headphone or the computer’s speakers and microphone, or through their smart phones using their magicJack account, as well as markets a mobile app subscription service called magicJack America that enables app-to-app calling and messaging. In addition, it offers other magicJack-related products; and wholesales telephone services to VoIP providers and telecommunication carriers. The company distributes its products through retail outlets, as well as through direct sales. magicJack VocalTec Ltd. was founded in 1989 and is headquartered in Jerusalem, Israel.