j2 Global Inc.
), a leading provider of unified messaging capabilities, recently
announced that it has acquired Netherland-based Backup Connect BV
for an undisclosed amount.
Backup Connect BV is an online backup company, which helps
clients recover lost data. So, purchasing the Dutch firm will not
only boost j2 Global's Cloud services enterprise business but
will also drive its top-line growth. Moreover, the company will
strengthen its presence in the U.S., UK, Ireland, New Zealand and
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 this acquisition.
j2 Global primarily depends on inorganic growth for expansion.
Last year, the company made six acquisitions related to
cloud-based services. The acquisitions were mainly across Europe
and Australia with a total capital spending of nearly $198
million. The company executed three more buyouts early this year.
The aggressive buyout strategy of the company will consolidate
its global leading position in the virtual PBX market.
Other Stocks to Consider
j2 Global currently has a Zacks Rank #3 (Hold). The other
stocks in the Internet/Application software industry that are
currently performing well include
Open Text Corp.
AVG Technologies N.V. (
DTS Inc. (
. Both Open Text and DTS Inc. currently have a Zacks Rank #3
(Hold) while AVG Technologies holds a Zacks Rank #1 (Strong
AVG TECHNOLOGS (AVG): Free Stock Analysis
DTS INC (DTSI): Free Stock Analysis Report
J2 GLOBAL INC (JCOM): Free Stock Analysis
OPEN TEXT CORP (OTEX): Free Stock Analysis
To read this article on Zacks.com click here.