Yesterday, j2 Global Inc. (JCOM), a leading provider of cloud-based digital faxing, voice messaging systems and digital media, announced that it has acquired two Australian Internet fax business service providers.
The buyouts include Sydney-based OzeFax and Brisbane-based Faxmate. However, the financial terms of the deals have not been disclosed. Last week, the company acquired City Numbers, a U.K.-based global phone number provider.
j2 Global delivers integrated communications services through its unique digital faxing and voice messaging systems. Several enterprises are now increasingly utilizing digital faxing services to reduce costs while improving security. This helps j2 Global’s corporate fax system to flourish during the economic downturn.
Digital facsimile system is widely used by financial services, insurance, and real estate companies worldwide. Large enterprises are now focused on reducing hardware footprints and operating expenses.
At present, j2 Global commands approximately 30% of the world’s cloud-based digital faxing system. We believe that exploration of new opportunities to improve its digital facsimile and voice services, through new acquisitions, will further act as tailwinds for j2 Global.
Segment wise, j2 Global continues to enhance its most powerful eFax brand with creative content and designs. The digital media segment, which was formed after the acquisition of Ziff Davis in Nov 2013, controls a series of leading websites, particularly in the technology sector.
These include PCMag.com, ComputerShopper, ExtremeTech, Toolbox.com and Geek.com. j2 global estimated that the acquisition of Ziff Davis will contribute around $60 million in full-year 2013.
Other Stocks to Consider
j2 Global currently carries a Zacks Rank #3 (Hold). Other better-ranked stocks in the Internet/Application software industry include Constant Contact Inc. (CTCT), E2open Inc. (EOPN) and TeleCommunication Systems Inc. (TSYS). All three stocks currently have a Zacks Rank #2 (Buy).
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