Gamma bolsters European position with Starface move

Cloud communications player Gamma has bolstered its European position through the acquisition of Starface Group. The move for the German IP telephony and cloud PBX solution player, for a reported €196m, will add more European coverage and expertise to the group.

The firm announced last week that its integration of its previous acquisition Coolwave Communications had enabled it to add more capabilities across the business, and the process of identifying opportunities to add value across the business will start with Starface once the deal concludes. Gamma is aiming to be the top player in the Gertman cloud communications space, and viewed the deal as a major plank in that strategy.

The deal has to go through approval, but once cleared it would provide Gamma with increased coverage of the German SME market, as well as gaining access to the Starface ecosystem of partners that also covers Austria and Switzerland.

Cloud adoption in Germany remains lower than rates seen in the UK, with Gamma looking to lean on its experiences here to reverse that situation on the continent.

Andrew Belshaw, CEO of Gamma, said that this deal was part of the ambition to become a leading European player.

“This acquisition marks a significant milestone for Gamma as we further strengthen our position in Europe’s cloud communications market. By combining Starface’s strong partner ecosystem and technical expertise with Gamma’s established connectivity capabilities, we’re delivering unmatched value to our customers and partners,” he said.

“Together, we’re not only strengthening our position in the German market, but also shaping the future of business communications for SMEs across Europe.”

Gerben Wijbenga, CEO of Central and Northern Europe at Gamma, spoke of the impact the deal would have on the firm's position in the dACH region: “This is significant for Gamma as we expand our presence in Europe’s largest market. The acquisition of Starface provides us with a fantastic opportunity to combine our strengths, deliver innovative communication solutions and disrupt the traditional telecoms space in the DACH region.”

In response, Florian Buzin, CEO of Starface, said the deal was right for both staff and customers. “This partnership builds on Starface’s legacy of innovation and channel excellence while unlocking new opportunities for growth and collaboration. Together, we are in an excellent position to lead the next chapter of cloud communications in Germany and beyond,” he said.

Gamma has signalled its intention to pick up Starface from its current owner, private equity player Maxburg. Moritz Greve, partner at Maxburg, said it was supportive of a successful transition to Gamma ownership.

“The team did a great job turning Starface into one of the DACH region’s leading cloud communications providers while quadrupling profitability, and we wish both teams continued success in becoming the leading competitive communications solutions provider in Germany,” he said.

Gamma has been using mergers and acquisitions to expand the business, not just on the comms front, but in other areas to bolster its managed services pitch. It has made several acquisitions in the past 18 months, including EnableX Group, which comprises three channel businesses, namely Pragma, Techland and Candi, as well as Satisnet, a provider of cyber security services in the UK and Europe.