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BRC Group Holdings agrees to acquire Sangoma Technologies for $204 million

BRC Group Holdings agrees to acquire Sangoma Technologies for $204 million

Money Moves

The deal would fold the Canadian business-communications provider into BRC Telecom, adding 2.7 million user seats

Today: BRC and Sangoma announce $204 million deal

Overview

Updated 1 hour ago

BRC Group Holdings, a Los Angeles holding company, agreed on September 28 to buy Sangoma Technologies, a Canadian business-communications provider, for about $204 million. The cash-and-stock deal would add Sangoma to BRC Telecom, a portfolio that includes magicJack, Lingo, and UOL.

The acquisition is BRC's sixth communications purchase since 2016. Combined, BRC's communications businesses and Sangoma generated about $441 million in trailing-twelve-month revenue as of June 2026.

Why it matters

If this deal closes, BRC Telecom becomes a bigger supplier of phone and contact-center services to small and mid-sized North American businesses.

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Key Indicators

$204M
Enterprise value of Sangoma deal
BRC values Sangoma at about $204 million (C$289 million), paid in cash and BRC shares.
$441M
Combined trailing-twelve-month revenue
BRC's communications businesses ($241M) plus Sangoma ($200M) as of June 2026.
2.7M
Sangoma unified-communications seats
Sangoma serves more than 100,000 business customers across its installed base.
44%
Sangoma stock surge after announcement
Sangoma shares jumped in after-hours trading on September 28 following the disclosure.
$72.5M
Sangoma fiscal Q4 2026 loss
Sangoma reported the quarterly loss alongside the acquisition announcement on September 28.

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Timeline

May 2026 September 2026

4 events Latest: Today
Tap a bar to jump to that date
  1. BRC and Sangoma announce $204 million deal

    Today M&A

    BRC agrees to acquire all Sangoma shares for $4.925 cash plus 0.04767 BRC share per share, valuing the company at about $204 million.

  2. Sangoma reports $72.5M fiscal Q4 loss

    Today Earnings

    Sangoma publishes fourth-quarter fiscal 2026 results showing a quarterly loss, disclosed alongside the sale agreement.

  3. Sangoma stock surges 44% in after-hours trading

    Today Market

    Sangoma shares jump following the acquisition announcement, reflecting the deal premium over the prior trading price.

  4. Sangoma launches strategic review

    Corporate

    Sangoma's board forms a special committee of independent directors to evaluate strategic alternatives.

Scenarios

1

Acquisition closes as planned in early 2027

Likely Resolves by Q1 2027

Discussed by: Both companies' boards, which unanimously approved the deal; the transaction is not subject to financing conditions

Sangoma shareholders approve the arrangement at the special meeting, courts and regulators sign off, and BRC funds the purchase using an amended $215 million term loan plus an equity contribution. Sangoma is delisted from TSX and Nasdaq, and BRC becomes a reporting issuer in Canada.

2

Sangoma shareholders reject the deal

Unlikely Resolves by Feb 28, 2027

Discussed by: The two-thirds vote threshold and minority approval requirement under Ontario's MI 61-101 leave room for shareholder opposition

At least one-third of votes cast oppose the arrangement, or the required minority approval under Multilateral Instrument 61-101 is not met. The deal collapses and Sangoma's board would face questions about the $72.5 million quarterly loss and the strategic review process.

3

Regulatory or court approval delays closing past early 2027

Possible Resolves by Q3 2027

Discussed by: The need for Ontario court approval and unspecified regulatory clearances adds procedural risk

The Ontario court hearing or a regulatory review takes longer than expected, pushing the anticipated close past BRC's stated early-2027 target. The deal eventually closes, but later than originally guided.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

July 2017

Mitel acquires ShoreTel (2017)

Mitel, a unified-communications provider, agreed to buy ShoreTel for about $530 million to strengthen its position with small and mid-sized business customers. The two companies had overlapping product lines in voice and contact-center software.

Then

The deal closed in late 2017, creating one of the larger pure-play UC vendors and removing a direct competitor from the market.

Now

Mitel itself was later taken private, illustrating a broader pattern of consolidation in the UC industry as standalone vendors struggled to keep pace with cloud migration.

Why this matters now

Like Mitel-ShoreTel, the BRC-Sangoma deal consolidates two communications providers targeting the same SMB and mid-market customer base, a sector where recurring revenue and installed seats drive valuations.

2021

Sangoma acquires Intermedia (2021)

Sangoma, then itself a consolidator, acquired Intermedia, a UCaaS and cloud-services competitor, in a deal worth several hundred million dollars. The acquisition roughly doubled Sangoma's subscriber base and expanded its cloud product line.

Then

The purchase made Sangoma one of the larger independent UCaaS providers, but integrating two platforms and carrying the acquisition's debt weighed on financial results.

Now

By 2026 Sangoma reported a $72.5 million quarterly loss, and its board launched a strategic review that ended in the sale to BRC.

Why this matters now

Sangoma went from acquirer to target in five years. Its trajectory shows how debt-funded consolidation in the UC market can turn a buyer into a seller when integration and margins slip.

Sources

(4)