Fusion Telecommunications International Inc. and communications products and services provider XComIP LLC struck a deal to create Fusion Global Services LLC, a newly formed company designed to offer voice services to carriers worldwide.
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 closing of the transaction, Fusion's Carrier Services division will be organized and managed separately from Fusion, with Fusion owning a 60% ownership position in the new entity and XComIP holding the remaining 40% ownership position.
XComIP CEO Jay Adams will lead the new company, which will help Fusion see an increase in consolidated revenue and gross profit and a reduction in operating expenses achieved by leveraging XComIP's capital equipment and network across the combined entity, according to a June 12 news release.
The transaction is expected to close before the end of the third quarter, subject to customary approvals and consents.