j2 Global Inc.
), 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
Other Stocks to Consider
j2 Global currently carries a Zacks Rank #3 (Hold). Other
better-ranked stocks in the Internet/Application software
Constant Contact Inc.
). All three stocks currently have a Zacks Rank #2 (Buy).
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