Ooma announced that it has entered into a definitive agreement to acquire Phone.com for approximately $23.2 million in cash as the company continues expanding its position in the small and medium business communications market.
The acquisition is expected to increase Ooma’s revenue, earnings, and cash flow once completed and add approximately 87,000 business users across North America. The transaction is anticipated to close in the fourth quarter of Ooma’s fiscal year 2026, pending regulatory approvals and customary closing conditions.
Phone.com is expected to contribute between $22 million and $23 million in annual revenue and between $1 million and $1.5 million in adjusted EBITDA based on current run rates. Ooma plans to fund the purchase using a combination of cash on hand and bank debt financing. The deal follows Ooma’s recent announcement of its agreement to acquire FluentStream, further strengthening its SMB-focused communications portfolio.
Founded in 2006 and headquartered in Newark, New Jersey, Phone.com serves roughly 36,000 customers and 87,000 users through its UCaaS platform. Its solutions include voice, video, messaging, call handling, and desktop and mobile applications. The company primarily reaches customers through e-commerce, online marketing, and direct sales, offering flexible and affordable business communication tools similar to Ooma Office.
Ooma stated that Phone.com’s platform and digital sales strategy align well with its ongoing expansion efforts. The acquisition is expected to be immediately accretive to adjusted EBITDA and non-GAAP earnings per share at closing. Ooma will host a conference call and webcast for analysts and investors at 5:00 p.m. Eastern time on November 24, 2025 to discuss the transaction, and a recorded version will be available for 12 months on the company’s investor relations website.
KEY QUOTES:
“We’re delighted and look forward to welcoming Phone.com into the Ooma portfolio of business solutions. This planned acquisition is intended to continue our strategy to extend our leadership in serving SMB customers. Phone.com’s established platform, strong online presence, and direct sales model fit well with Ooma’s strategy and will enable opportunities to capture synergies over time. We look forward to building on the strong success Phone.com has achieved so far serving small business customers to deliver long-term value for our shareholders.”
Eric Stang, Chief Executive Officer, Ooma
“We are pleased to join forces with Ooma, whose vision and capabilities align perfectly with our mission to provide smarter business communication solutions. I am extremely proud of our achievements and confident that Ooma’s commitment to quality, integrity, and steady growth will enable Phone.com to innovate and continue to deliver value to our customers.”
Ari Rabban, Chief Executive Officer, Phone.com
