PDF summary
return to news

New York | December 2014

Praesidian Capital's Third Senior Debt Investment in Fusion Supports PingTone Acquisition

Praesidian's $5 Million Investment Helps Drive Fusion's Cloud Services Expansion

NEW YORK - December 1, 2014 - Praesidian Capital ("Praesidian" or "the Firm"), a leading provider of senior and subordinated debt capital for small and mid-sized companies, reported today that it co-led a $5 million first-lien investment in Fusion (OTCQB: FSNN), a leading cloud services company. Funds were used to support Fusionís acquisition of another cloud services company, PingTone Communications. This was Praesidianís third investment in Fusion and increased Praesidianís overall investment to $23.5 million.

Fusion is a New York-based provider of integrated cloud solutions, including cloud communications, cloud connectivity, cloud computing and other advanced applications managed in the cloud to small, medium and large businesses. Praesidian has worked with the company since 2012 when it financed Fusion's acquisition of Network Billing Systems, Inc. (NBS), a Wayne, N.J.-based provider of cloud communications and unified communications services. In April 2014, Praesidian supported Fusionís acquisition of the cloud communications assets of Broadvox, Inc.

PingTone Communications, Fusion's latest acquisition, provides cloud-based communications solutions to mid-sized companies in energy, healthcare, finance, emergency response and national defense; multi-location enterprises; professional organizations; and branch offices of large enterprise companies, with a strong focus on serving the greater Washington, D.C. area. The company attributes its success to an advanced cloud communications services platform and exceptional sales and customer support that meet the specialized requirements of the key vertical markets it serves.

With higher-than-industry average revenue of $2,900 per customer, PingTone expands Fusion's reach into the government sector and surrounding Washington, D.C. area. PingTone further enhances Fusion's distribution with a strong direct sales force that complements Fusionís nationwide distribution network.

Glenn Harrison, Partner of Praesidian, stated "We are excited to help Matt Rosen and the Fusion team to execute their growth strategy of bringing great companies and employees under the Fusion umbrella to expand and strengthen its customer base and product offerings. PingTone fits into Fusionís long-term vision perfectly and nicely expands its geographic footprint."

Matthew Rosen, Fusion CEO, added, "We could not ask for better partners in executing on our targeted acquisition strategy. Praesidianís support has enabled us to focus on building our company into an industry-leading provider of solutions delivered in the cloud. The cloud services industry is growing at a dramatic rate, and we are delighted to share in that growth with such a visionary leader in financial services."

About Fusion
Fusion is a leading provider of integrated cloud solutions to small, medium and large businesses. Fusion's advanced, high availability cloud service platform enables the integration of leading edge solutions in the cloud, including cloud communications, cloud connectivity, cloud computing and other cloud services such as storage and security. Fusion's innovative, yet proven cloud solutions lower customers' cost of ownership, and deliver new levels of security, flexibility, scalability and speed of deployment. For more information, please visit www.fusionconnect.com.

About PingTone
Founded in 2001, PingTone Communications is focused daily on delivering the competitive advantages of cloud-based, voice communications (VoIP) while freeing companies from the burden of large capital investments in new voice equipment and technology staff. Through a partnership with recognized industry leaders in VoIP technologies, PingTone leads the vanguard in hosted VoIP applications for business and government customers. The company is headquartered in Herndon in Northern Virginia's Dulles Technology Corridor, and services customers in the greater Washington, D.C. area. For more information, visit www.pingtone.com.

About Praesidian Capital
Praesidian Capital is an innovative private investment firm focused on providing senior and subordinated debt along with growth capital to private lower middle market businesses in the United States, United Kingdom, Germany, and selectively in Northern Europe. Praesidian invests in established, small and mid-sized companies often in connection with management buyouts, recapitalizations and refinancings. Based in New York City with an office in London, Praesidian manages nearly $1 billion in committed capital. For more information, visit www.praesidian.com.

The Abernathy MacGregor Group
(213) 630-6550
Rivian Bell, rlb@abmac.com
Kristin Cole, kec@abmac.com

return to news