Another Acquisition for JCOM - Analyst Blog

By
A A A

j2 Global Inc. ( JCOM ), 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 companies.

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 million.

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. ( OTEX ) , AVG Technologies N.V. ( AVG ) and Radware Ltd. ( RDWR ) . Both Open Text and Radware Ltd. currently has a Zacks Rank #2 (Buy) while AVG Technologies have a Zacks Rank #1 (Strong Buy).



AVG TECHNOLOGS (AVG): Free Stock Analysis Report

J2 GLOBAL INC (JCOM): Free Stock Analysis Report

OPEN TEXT CORP (OTEX): Free Stock Analysis Report

RADWARE LTD (RDWR): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AVG , JCOM , OTEX , RDWR

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

61,354,178
  • $10.59 ▲ 13.26%
57,732,182
  • $16.27 ▲ 1.12%
51,991,548
  • $103.30 ▲ 0.78%
48,129,834
  • $20.65 ▲ 5.52%
41,623,916
  • $12.63 ▲ 8.13%
34,295,241
  • $76.68 ▲ 2.49%
31,519,079
  • $34.57 ▼ 1.00%
28,847,879
  • $3.64 ▲ 0.28%
As of 9/2/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com