j2 Global Inc.
), a leading provider of unified messaging capabilities, recently
declared that it has acquired MetroFax, Inc, a Internet fax
service provider based in Bellevue, Washington. However, the
terms and conditions of the deal were not disclosed by any of the
At present, j2 Global commands approximately 30% of the
world's digital faxing systems. So, the acquisition of MetroFax
will further strengthen JCOM's market share. The company exited
the fourth quarter of 2012 with a strong cash position of $343.6
million and record high revenues of $102 million, up 19.9% year
over year, easily beating the Zacks Consensus Estimate of $90
Hence, we believe that a solid cash position coupled with a
low debt-to-capitalization ratio of 0.29, has induced the company
to move ahead with its acquisition.
j2 Global primarily depends on inorganic growth for expansion.
Last year, the company made six acquisitions related to
cloud-based service. The acquisitions were mainly across Europe
and Australia with a total capital spending of nearly $198
million. The aggressive buyout strategy of the company will
consolidate its leading position in the virtual PBX market.
Other Stocks to Consider
j2 Global currently has a Zacks Rank #2 (Buy). The other
stocks in the Internet/Application software industry that are
currently performing well include
Open Text Corp.
AVG Technologies N.V. (
Radware Ltd. (
. Both Open Text and Radware Ltd. currently has a Zacks Rank #2
(Buy) while AVG Technologies have a Zacks Rank #1 (Strong
AVG TECHNOLOGS (AVG): Free Stock Analysis
J2 GLOBAL INC (JCOM): Free Stock Analysis
OPEN TEXT CORP (OTEX): Free Stock Analysis
RADWARE LTD (RDWR): Free Stock Analysis
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