Fusion, XComIP to form JV to launch Fusion Global Services
Fusion has reached an agreement with XComIP create Fusion Global Services, LLC, a newly formed company organized to provide voice services to carriers worldwide. The transaction is expected to close before the end of the third quarter of 2017 subject to customary approvals and consents. Fusion and XComIP will both contribute their carrier services revenue, customers, vendor agreements and certain system and infrastructure assets to the newly formed entity. Upon the close of the transaction, Fusion's Carrier Services division will be organized and managed separately from Fusion, with Fusion holding a 60% ownership position in the new entity. XComIP, an established service provider of similar size in carrier services revenue and customer base, will hold a 40% ownership position in the new entity. The new company, which will be led by Jay Adams, XComIP's CEO, will leverage the considerable strengths of both companies in serving the global carrier community while relieving Fusion of much of the day-to-day management of the business that currently resides in its Carrier Services division. This will likewise enable Fusion's management team to devote greater time and resources toward expanding the company's rapidly growing and higher margin Business Services division.