Blueface and Star2Star Announce Merger

Star2Star Communications and Blueface have announced a new merger, wherein the two companies will combine into a single provider of Unified Communications as a Service (UCaaS) and Hybrid Cloud Communications. With their combined market and customers, the combined company, known as StarBlue, will be one of the top five global providers in the Unified Communications market.

Star2Star Communications is a Hybrid Cloud Communications company based in Florida, known for its patented Constellation Network. Blueface, founded in 2004 and based in Ireland, provides UCaaS to businesses, enterprises, and carriers of all sizes, using a proprietary software platform that offers feature rich and flexible UC solutions. Given the synergy between the two companies, and their respective customer bases in North America and Europe, the merger is a big move, but one that is likely to pay off well.

Following the merger, Star2Star CEO Norman Worthington will become the Executive Chairman, while Alan Foy, CEO of Blueface, will be Group CEO of StarBlue. Nameer Kazzaz and Sergey Galchenko, of Blueface and Star2Star will work together as Group Co-CTOs. Michelle Accardi, President and Chief Revenue Officer of Star2Star, will retain her position across the group, as will John McGovern and David Portnowitz, Chief Financial Officer and Chief Marketing Officer of Star2Star.

The deal is valued at $500 million, although the financial details of the merger have not yet been disclosed. Following the merger, Star2Star’s Florida headquarters will become the new StarBlue headquarters, while the Blueface facilities in Ireland will be used as its headquarters for the EMEA region.

In order to maintain business continuity, the two companies will continue to retain their existing names and brands in their respective markets, but the StarBlue brand will be introduced as joint products are created and introduced. As such, customers of either company do not need to worry about the merger affecting their existing solutions.

According to Blair Pleasant, President & Principal Analyst of COMMfusion, “UCaaS vendors have been trying hard to expand their geographical offerings and reach in order to grow and provide services for multinational customers. The Blueface platform has been deployed in 10 countries across 3 continents, while Star2Star serves primarily North American businesses. The merger of Star2Star and Blueface will allow the new StarBlue to better serve and provide a more complete offering for global businesses, while expanding the company’s market share and installed base.”

She added: “There shouldn’t be any disruption to existing customers, and as with any merger, we’ll need to see how the company handles product overlaps, what the future roadmap will look like, and how the channels will be merged.”  

For more information, visit www.star2star.com and www.blueface.com.