Gamma to acquire STARFACE to boost cloud market in Europe

Gamma has announced plans to acquire the STARFACE Group from Maxburg, aiming to enhance its presence in Europe's cloud communications market.

The prospective acquisition of STARFACE, a provider of IP telephony and cloud PBX solutions based in Germany, is subject to regulatory approval. Gamma seeks to challenge incumbent telecommunication providers in Germany, intending to transform the communications landscape for small and medium-sized enterprises (SMEs) with agile, customer-driven solutions.

Gamma believes that the acquisition will bolster its position as a leading provider of cloud seats in Germany, thereby accelerating the adoption of cloud technologies in a region where such penetration is currently low compared to the UK. By integrating the extensive partner network of STARFACE, which also includes Austria and Switzerland, Gamma aims to provide comprehensive coverage of the German SME market.

Andrew Belshaw, Chief Executive Officer of Gamma, remarked, "This acquisition marks a significant milestone for Gamma as we further strengthen our position in Europe's cloud communications market. By combining STARFACE's strong partner ecosystem and technical expertise with Gamma's established connectivity capabilities, we're delivering unmatched value to our customers and partners. Together, we're not only strengthening our position in the German market but also shaping the future of business communications for SMEs across Europe."

Further highlighting the strategic move, Gerben Wijbenga, CEO of Central and Northern Europe at Gamma, commented, "This is significant for Gamma as we expand our presence in Europe's largest market. The acquisition of STARFACE provides us with a fantastic opportunity to combine our strengths, deliver innovative communication solutions, and disrupt the traditional telecoms space in the DACH region. We're excited about the potential this partnership brings for our customers, partners, and teams."

Florian Buzin, the CEO of STARFACE, expressed enthusiasm, saying, "We are thrilled to join forces with Gamma, a company that shares our vision of empowering SMEs with cutting-edge communication solutions. This partnership builds on STARFACE's legacy of innovation and channel excellence while unlocking new opportunities for growth and collaboration. Together, we are in an excellent position to lead the next chapter of cloud communications in Germany and beyond."

Moritz Greve, Partner at Maxburg, added, "We are very excited to see our successful partnership with Florian and the STARFACE management team conclude with a transaction with Gamma. The team did a great job turning STARFACE into one of the DACH region's leading cloud communications providers while quadrupling profitability and we wish both teams continued success in becoming the leading competitive communications solutions provider in Germany. Gamma is the perfect fit, bringing shared values and a vision that ensures a great future for the group, its employees, and its partners."

The acquisition expands Gamma's Unified Communications as a Service (UCaaS) portfolio, enhancing its ability to offer SMEs tailored communication solutions. Built-in disaster recovery, reliability, and scalability are among the benefits foreseen in this expanded offering. STARFACE's partner ecosystem will enhance Gamma's channel capabilities, offering greater flexibility and accessibility across Germany.

This acquisition supports Gamma's ambitions to disrupt incumbents in the German market, encourage cloud adoption, and drive innovation through its expanded offerings. Once regulatory approval is granted, further communications about the merger's implementation will follow.

Q Advisors, a global investment banking boutique specialising in telecommunications, media, and technology, served as the exclusive financial advisor to STARFACE and its stockholders for this transaction.