UK-based Gamma has announced its intention to acquire IP telephony and cloud PBX solutions company STARFACE in a move that massively expands its footprint in the German market.
“This acquisition marks a significant milestone for Gamma as we further strengthen our position in Europe’s cloud communications market,"
Gamma CEO Andrew Belshaw said in the announcement.
The acquisition, although subject to regulatory approval, would position the telecoms provider to challenge the incumbent providers in the German cloud communication market.
STARFACE's standing
STARFACE, founded in 2005, is part of group of telecommunication companies that leverage their combined expertise, vision, and skills to cater to business communications.
The group includes STARFACE, estos, and vio:networks.
Together, they have developed products and solutions that operate seamlessly across all major devices and operating systems and enable "true unified communications".
Headquartered in Karlsruhe, Germany, the business has additional offices in Munich and Starnberg and employs around 260 people.
What an Acquisition Brings
Although Europe’s largest market overall, it has significantly lower cloud penetration than the UK.
This acquisition positions the British ISP Gamma as one of the top providers of cloud seats in Germany and accelerates cloud adoption.
This, alongside its acquisition of another German telco Placetel at the end of 2024 and other previous acquisitions, gives Gamma a base of over 500,000 users in the market.
Cavell Principal Analyst Dom Black said the news "makes them one of the largest cloud PBX providers operating in the market with the biggest potential in terms of future cloud PBX growth in Europe.”
Gamma’s portfolio now offers full coverage of the German SME market, supported by a strengthened ecosystem of the STARFACE Group’s extensive partner network, which also covers Austria and Switzerland.
Gamma’s acquisition will see it expand its UCaaS portfolio, offering SMEs tailored communications solutions with enhanced reliability, scalability, and built-in disaster recovery.
For instance, STARFACE solutions offers Microsoft Teams integration into the company-wide telephone system, allowing users access to UCC functionalities directly from the Teams interface.
Equally, STARFACE new version of its VoIP software STARFACE 9 has released, which offers greater customisation of its telephone system, revisions of its mobile and desktop apps, and its first integration of AI into the module system.
Gamma will also take advantage of STARFACE’s partner ecosystem to further complement and strengthen its channel capabilities, ensuring greater flexibility and accessibility for businesses across Germany.
"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,"
Gamma CEO of Central and Northern Europe Gerben Wijbenga said.
Gamma's Acquisitions Bearing Fruit
Acquisitions are seemingly common-place in Gamma's strategy to augment its offerings and advance its position across markets.
Just last week, Gamma announced that its acquisition of SMS and voice services provider Coolwave had bore fruit, as it integrated the company's international voice termination capabilities into its global offering.
Equally, it last year acquired Brightcloud in efforts to bolster its portfolio of CCaaS and CX products and services.
