Russell 2000® Index & Russell 3000® Index Add Cloud Services Provider Fusion
New York City-based Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is a single source for the cloud®. Fusion’s advanced, proprietary cloud service platform enables the integration of leading-edge solutions in the cloud, including cloud communications, contact center, cloud connectivity and cloud computing. Fusion’s innovative, yet proven cloud solutions lower their customers’ cost of ownership and deliver new levels of security, flexibility, scalability, and speed of deployment.
Fusion was recently added to the small-cap Russell 2000® Index and the broad-market Russell 3000® Index effective at the open of trading today, marking the annual Russell U.S. Indexes reconstitution. Membership in the Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000® Index or the small-cap Russell 2000® Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell U.S. Indexes primarily by objective, market-capitalization rankings, and style attributes. Russell U.S. Indexes are widely used by investment managers and institutional investors as the basis for index funds and as benchmarks for active investment strategies. Approximately $9 trillion in assets are benchmarked against Russell U.S. Indexes. Russell U.S. Indexes are part of FTSE Russell, a leading global index provider.
Matthew Rosen, Fusion’s Chairman and CEO stated, “Our inclusion into two of the most widely-followed benchmarks for small-cap and broader-market growth companies is a testament to the growth that we have achieved over the last six years. In 2012, Fusion had just 5,000 customers and reported revenue of $7 million and an adjusted EBITDA loss of $4 million. In contrast, Fusion now serves approximately 160,000 customers, and over the next 12 months, expects to generate at least $575 million in revenue and achieve an Adjusted EBITDA run-rate of more than $140 million. Our confidence is further supported by the successful progress we have made on the integration of our two recent acquisitions and the overwhelmingly positive response we have received from our channel partners across the country,” Mr. Rosen continued. “Fusion is now one of the largest cloud services providers in North America with a unique single source strategy, serving business customers throughout the U.S. and Canada. Our progress thus far, and today’s addition to the Russell 2000® and 3000® Indexes, represent important achievements for Fusion as we look to realize our intermediate-term financial objectives of $750 million in annualized revenue and $185 million in annualized Adjusted EBITDA.”
Fusion recently announced that on June 15, 2018, it closed its previously-announced acquisition of MegaPath Holding Corporation (“MegaPath”). The total purchase price was $71.5 million, consisting of $61.5 million in cash and 1.7 million shares of Fusion common stock priced at $5.78 per share. The cash portion of the purchase price was financed from Fusion’s existing cash balances held in escrow for this acquisition. The acquisition of MegaPath contributes to Fusion approximately $67 million in annualized revenue, 95% of which is contracted monthly recurring revenue, with an average monthly revenue per customer (ARPU) of $750 and 1.0% monthly churn, and brings Fusion’s customer base to approximately 160,000 businesses. MegaPath also contributes to Fusion approximately $15 million in annualized Adjusted EBITDA including anticipated cost synergies, which will be realized within 12 months of the close.