Ooma has taken a significant step in strengthening its position in the business communications market by announcing a definitive agreement to acquire Phone.com, a move that underscores the growing consolidation within cloud based communications. The company, known for its smart communications platform for businesses and consumers, said the decision to acquire Phone.com reflects its broader strategy to enhance service offerings for small and medium sized organizations. With many providers racing to scale capabilities for SMBs, the agreement marks a notable milestone as Ooma continues to expand its footprint in cloud communications and plans to acquire Phone.com to accelerate that effort.
Under the terms of the agreement, Ooma will purchase Phone.com for approximately twenty three point two million dollars in cash, subject to working capital adjustments. The acquisition is expected to close in the fourth quarter of Ooma’s fiscal year 2026, pending regulatory approvals and customary closing conditions. The company said the transaction will be accretive to adjusted EBITDA and non GAAP earnings per share beginning on the closing date, reinforcing its expectations for long term financial benefits.
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The move comes shortly after Ooma announced a separate definitive agreement to acquire FluentStream, another provider of enterprise grade business phone services for SMBs. Together, the two acquisitions signal a focused strategy to grow within the competitive cloud communications sector. According to current run rate projections, Phone.com is expected to generate between twenty two and twenty three million dollars in revenue annually, along with one to one point five million dollars in adjusted EBITDA before synergies.
Founded in 2006 and headquartered in Newark, New Jersey, Phone.com has built a cloud communications platform tailored to small and medium sized businesses. The company serves roughly thirty six thousand customers and eighty seven thousand users across North America and offers a range of communications tools including voice, video, text, call handling, and desktop and mobile applications. Much like Ooma Office, Phone.com relies heavily on e commerce, online marketing, and direct sales to reach customers, making the business a complementary fit for Ooma’s existing model. Ooma said it plans to finance the acquisition through a combination of cash on hand and bank debt.
Eric Stang, chief executive officer of Ooma, highlighted the strategic value of the agreement, noting that the addition of Phone.com will help expand leadership in the SMB market. “We are delighted and look forward to welcoming Phone.com into the Ooma portfolio of business solutions,” he said. He added that the platform and strong online presence align well with Ooma’s long term strategy and create opportunities to capture synergies over time.
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Ari Rabban, chief executive officer of Phone.com, said the decision reflects a shared vision for smarter communications. “We are pleased to join forces with Ooma, whose vision and capabilities align perfectly with our mission to provide smarter business communication solutions,” he said, expressing confidence in continued innovation under Ooma’s ownership.
As cloud communications continues to evolve, the agreement to acquire Phone.com positions Ooma to broaden its reach, enhance service capabilities, and compete more aggressively in the SMB market. With demand rising for flexible, affordable communications solutions, the acquisition marks a pivotal step in shaping Ooma’s future growth.
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