j2 Global on an Acquisition Spree - Analyst Blog


j2 Global Inc. ( JCOM ), a leading provider of cloud-based digital faxing, voice messaging systems and digital media, recently acquired City Numbers, a U.K.-based global phone number provider.

City Numbers provides inbound local, national and international toll free phone numbers in more than 80 countries. This acquisition will enhance j2 Global's existing inventory of toll free numbers. However, the financial term of this deal has not been disclosed.

Exploration of new opportunities for both digital facsimile and voice services, through new acquisitions, will further act as tailwinds for j2 Global, going forward.

We also believe that the company's recent diversification into the digital media segment will be incrementally positive. According to several research analysts, this segment will continue to grow in double-digits in the near future.

j2 Global's churn rate, in the third quarter of 2013, was 2.27% compared with 2.28% in the year-ago quarter. Addition of net paid Dial in Demand (DID) amounted to approximately 29,000 in third-quarter 2013, leading to a total net paid DID of a record-high 2.22 million as of Sep 30, 2013. At present, j2 Global commands approximately 30% of the world's cloud-based digital faxing system.

Segment wise, j2 Global continues to grow its most powerful eFax brand with creative content and designs. The digital media segment, which was formed after the acquisition of Ziff Davis in Nov 2013, controls a series of leading websites, particularly in the technology sector.

These include PCMag.com, ComputerShopper, ExtremeTech, Toolbox.com and Geek.com. j2 global estimated that the acquisition of Ziff Davis will contribute around $60 million in full-year 2013.

Other Stocks to Consider

j2 Global currently carries a Zacks Rank #3 (Hold). Other better-ranked stocks in the Internet/Application software industry include Constant Contact Inc. ( CTCT ), E2open Inc. ( EOPN ) and OpenTable Inc. ( OPEN ). All three stocks currently have a Zacks Rank #2 (Buy).

CONSTANT CONTAC (CTCT): Free Stock Analysis Report

E2OPEN INC (EOPN): Free Stock Analysis Report

J2 GLOBAL INC (JCOM): Free Stock Analysis Report

OPENTABLE INC (OPEN): Free Stock Analysis Report

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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: CTCT , EOPN , JCOM , OPEN



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