Deal Notes November 2009

BroadSoft, Inc. Takes a Pinch to Facilitate an Acquisition.  11/2/09 Private Placement.

This was the tiniest of rounds at $1.5M.  The SEC filing says that the money is used for acquisition purposes.  This news comes just weeks after the company announced plans to acquire Silicon Valley-based Packet Island, a maker of web-based software used to manage Internet phone and video networks.  The question that comes to mind when I read about BroadSoft is why is this Gaithersburg company still around?  Great idea to pioneer the VoIP software market.  Good execution and market penetration.  Excellent management.  Why didn’t this sell years ago?  I presume the company is a victim of bad timing and the downturn of telecom and technology M&A.  A further complication is that there is over $60M of venture equity invested in BroadSoft by the likes of Columbia, Bessemer and Grotech.  It takes a big number to make everyone whole and then happy.  While waiting for a market, the company must believe that the best strategy is to keep the foot on the accelerator.  Hence, an acquisition.

This entry was posted in Deal Notes and tagged , , , , . Bookmark the permalink. Post a comment or leave a trackback: Trackback URL.

Post a Comment

Your email is never published nor shared. Required fields are marked *

You may use these HTML tags and attributes <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>


  • The Black & Decker Commentaries

    For the complete, downloadable commentaries on the sale of Black & Decker to The Stanley Works, see the Commentaries tab above.

  • Comments to Chessiecap are Welcome

    Click on PRIVATE COMMENTS tab above.