Newark-based Phone.com, a provider of cloud-based business communications for small and medium-sized organizations, was acquired by California-based Ooma, Inc., it was announced Tuesday.
The acquisition of Phone.com is expected to be accretive to Ooma’s adjusted EBITDA and non-GAAP earnings per share starting on the closing date of the transaction, which is expected to occur in the fourth quarter of Ooma’s fiscal year 2026, subject to the receipt of required regulatory approvals and satisfaction or waiver of other customary closing conditions.
The acquisition is expected to close toward the end of 2025, subject to certain regulatory requirements
Phone.com is expected to generate $22-$23 million in revenue and $1.0-$1.5 million in adjusted EBITDA annually, based on current run rates and before synergies. The board of directors of Ooma has approved the transaction, and Ooma expects to finance the acquisition through a combination of cash on hand and bank debt financing.
Founded in 2006 by Mike Mann and headquartered in Newark, Phone.com is a cloud communications/UCaaS provider focused on serving small and medium sized businesses. The company primarily utilizes the Phone.com brand and website to sell through e-commerce, online marketing and direct sales channels.
Like Ooma Office, Phone.com offers flexible, affordable, and reliable solutions spanning voice, video, text, specialized call handling, and desktop and mobile applications. The company serves approximately 36,000 customers and 87,000 users across North America from its proprietary UCaaS platform.
CEO Ari Rabban applauded the announcement on LinkedIn.
“This is an important milestone for our company and marks an exciting new chapter — one that will allow us to continue growing with the support of Ooma’s outstanding team and the resources they can provide, which were previously beyond our reach,” he wrote.
“I am incredibly proud of our team for the genuine innovation (not just a buzzword!) and the achievements we’ve reached as an independent company with modest budgets — plus, of course, the best name. “Our entire team is expected to join the Ooma family, and we will continue to operate and serve our customers and partners with the same care and professionalism they are accustomed to.” Ooma bills itself as a smart communications platform for businesses and consumers. This acquisition follows Ooma’s recent announcement of a definitive agreement to acquire FluentStream, a leading provider of enterprise-grade business phone services for SMBs.
