Gamma has announced that it has reached an agreement to acquire Starface for a cash payment of approximately £165 million.
Starface was founded in 2005 and provides proprietary business communication and collaboration software solutions that have been tailored to fit the needs of the German market.
Starface is being acquired, excluding transaction costs, in a €196 million deal for the purchase of 100 per cent of the equity of the company on a debt-free / cash-free basis.
As per the terms of the transaction, Gamma will acquire the entire issued share capital of SF Technologies Holding, the company trading as Starface. This remains subject to customary regulatory clearance, which is expected to be received within two months.
Andrew Belshaw, chief executive, Gamma (pictured), commented, “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.”
Florian Buzin, chief executive and founder, Starface, added, “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.”
Gamma said Germany holds strategic importance as it represents the largest, and growing, cloud PBX market in Europe. Germany has significantly lower cloud penetration in a larger SME market than the UK.
The acquisition of Starface aims to deliver on Gamma’s strategy to establish a new anchor in the European business, alongside its well-established UK business.
Dom Black, principal analyst, Cavell, explained the significance of the deal. He said, “This, tied with the Placetel acquisition at the end of 2024 and other previous acquisitions, gives Gamma a base of over 500,000 users in the German market which 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.”