Growth and mergers in the enterprise cloud communication industry
The cloud communication platform market is growing tremendously. MarketsandMarkets, the world's second-largest market research firm, released a report in February 2016 projecting the industry to grow from $1.36 billion this year to $4.45 billion by 2021. The researchers believe this exponential growth is due to industry leaders seeking out innovative ways to eliminate the traditional pitfalls of communication services and keep up with swiftly advancing technology.
While the industry has been slow to consolidate, two leaders recently made steps to simplify global cloud communications. CLX Communications, a leading provider of enterprise cloud communications services and software solutions, recently announced its intentions to acquire Mblox, one of the largest application-to-person mobile messaging providers in the world, for $117 million, according to Reuters.
Johan Hedberg, the CEO and co-founder of CLX, said this deal will expand CLX's worldwide communications network, while providing the company will a firm foothold in the U.S. marketplace. Though both companies serve a global market, Mblox has a firm position in the U.K., U.S. and Australia, while CLX maintains a strong role in the European market. This deal will complement the future growth these two enterprise communication service providers want to achieve.
"The combination of the companies continues CLX's impressive growth and I am delighted with the announcement of this deal," CEO of Mblox Tom Cotney, said. "It gives our customers more of what we have been able to deliver over the past three years – improvements in quality, reliability and the broadest global reach in the industry. It gives our employees new opportunities and the pride of being a part of the undisputed leader in an exciting industry."
Overall, this deal allows the newly combined company the opportunity to master the market of the three main mobile communication channels – messaging, data and voice – over the next few years.