Telecom Technologies & Services News

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FOCUS Carrier-Focused Telecom Technology Quarterly: Fall 2021 Report

Public Markets

The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) continued its trend of strong gains with a 7.2% increase in our fall reporting period. While strong, the gain still lagged the broader indices as the S&P 500 was up 7.6% and the NASDAQ was up 11.0% over the same time frame.The CFTTI also turned in an impressive 12-month gain of 28.9%. Even so, the sector still came in slightly behind both the 29.2% gain in the S&P 500 and the 29.6% gain in the NASDAQ. Sector multiples continued their upward trend and closed out the period at 2.8x revenue and 13.3x EBITDA. These compare very favorably to year-ago multiples of 2.3x revenue and 11.5x EBITDA.
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FOCUS Enterprise-Focused Telecom Technology Quarterly – Summer 2021

Public Markets

The FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) delivered a strong return of 12.6% over these past three months. This outperformed both the S&P 500 and the NASDAQ, each of which gained only 5.1%. For the past 12-months, the sector delivered very similar returns to the broader indices. The 34.8% year-over-year return in the EFTTI is slightly above the 34.5% gain in the S&P 500, but slightly lower than the 37.4% return of the NASDAQ. Sector multiples are up considerably compared to this same time last year. The sector revenue multiple increased from 5.3x to 7.0x, while the sector EBITDA multiple increased from 20.7x to 27.4x.
Sage Management and SIB

FOCUS Investment Banking Represents Sage Management in its Acquisition by SIB Fixed Cost Reduction

Washington, DC, (August 9, 2021) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture and corporate finance services, an- nounced today that Sage Management, Inc. (“Sage”), a provider of best-in-class software-driven solu- tions that enable telecom service providers, large enterprises, and government customers to optimize their communications inventory and spend, has been acquired by SIB Fixed Cost Reduction, a portfolio company of O2 Investment Partners.
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FOCUS U.S. Communications Service Provider Quarterly: Summer 2021 Report

Public Markets

The FOCUS Communications Service Provider Index (CSPI) was barely in the black for this current period with a three-month gain of 1.0%.This lagged both the 8.2% gain in the S&P 500 and the 9.5% gain in the NASDAQ over the same time frame by a wide margin.The situation is similar for the full year period as the CSPI’s increase of 16.5% represents less than half of the annual gains of the S&P 500 (up 38.6%) and the NASDAQ (up 44.2%). Sector multiples are higher than at this same time last year and closed out the period at 3.1x revenue and 8.7x EBITDA. Year-ago multiples were only 2.7x revenue and 7.8x EBITDA.
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FOCUS Telecom Business Services Quarterly: Summer 2021 Report

Public Markets

Once again, the FOCUS Telecom Business Services Index (TBSI) climbed higher, gaining 3.5% over the past three months. This marks the fifth straight period with a positive return for the sector. However, the TBSI did lag the broader indices as the S&P 500 was up 8.2% and the NASDAQ was up 9.5% over the same time period. When looked at over the past 12 months, the sector’s return compares more favorably to the overall market. The 43.3% year-over-year gain in the TBSI outperforms the 38.6% gain in the S&P 500 and falls just shy of the 44.2% gain in the NASDAQ. Sector multiples are also higher than at this same time last year and closed out the period at 0.7x revenue and 9.6x EBITDA. This compares to year-ago multiples of 0.6x revenue and 7.4x EBITDA.

Sage Management has been acquired by SIB Fixed Cost Reduction, a portfolio company of O2 Investment Partners

Sage Management has been acquired by SIB Fixed Cost Reduction, a portfolio company of O2 Investment Partners

Washington, DC, (August 9, 2021) – FOCUS Investment Banking (“FOCUS”), a national middle market investment banking firm providing merger, acquisition, divestiture and corporate finance services, announced today that Sage Management, Inc. (“Sage”), a provider of best-in-class software-driven solutions that enable telecom service providers, large enterprises, and government customers to optimize their communications inventory and spend, …

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FOCUS Carrier-Focused Telecom Technology Quarterly: Summer 2021 Report

Public Markets

The FOCUS Carrier-Focused Telecom Technology Index (CFTTI) enjoyed yet another strong reporting period with a three-month gain of 13.1%. Not only was this gain impressive in absolute terms, but it handily outperformed both the 10.3% gain in the S&P 500 and the 4.2% gain in the NASDAQ over the same time period.The CFTTI still lags the broader indices for the full year period as its 18.6% gain in the last 12-months compares unfavorably to both the 38.1% gain in the S&P 500 and the 44.9% gain in the NASDAQ. Sector multiples ended the period at 2.6x revenue and 12.8x EBITDA. Both of these are higher than year-ago multiples of 2.4x revenue and 11.7x EBITDA.
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FOCUS Enterprise-Focused Telecom Technology Quarterly – Spring 2021

Public Markets

The FOCUS Enterprise-Focused Telecom Technology Index (EFTTI) cooled off significantly this past three months but still managed to turn in a positive return of 2.2%. This lagged both the 12.6% gain in the S&P 500 and the 6.8% gain in the NASDAQ by fairly wide margins.The sector is still up a hefty 48.4% over the past year, which puts its performance roughly in the middle of the 43.6% gain in the S&P 500 and the 57.1% gain in the NASDAQ over the corresponding time frame. Sector multiples are also significantly higher than they were a year ago. The sector revenue multiple jumped from 4.0x to 6.3x, while the sector EBITDA multiple increased from 16.0x to 24.6x.
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FOCUS U.S. Communications Service Provider Quarterly: Spring 2021 Report

Public Markets

The FOCUS Communications Service Provider Index (CSPI) had a fourth straight reporting period with a positive return. However, this period’s gain of 1.3% was relatively modest and under-performed both the 5.8% gain in the S&P 500 and the 2.8% gain in the NASDAQ over the corresponding time frame. The CSPI is also up 27.6% for the full year. However, even with this substantial increase the sector still lags the S&P 500 (up 53.7%) and the NASDAQ (up 72.0%) by a wide margin. Sector multiples are significantly higher than they were at this time last year. The sector revenue multiple increased from 2.5x to 3.0x, and the sector EBITDA multiple jumped from 7.2x to 8.5x
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FOCUS Telecom Business Services Quarterly: Spring 2021 Report

Public Markets

The FOCUS Telecom Business Services Index (TBSI) had a fourth straight reporting period with a positive return, marking a full year of positive returns since the outbreak of the pandemic. This past three months was particularly strong as the sector’s gain of 20.1% handily outperformed both the 5.8% gain in the S&P 500 and the 2.8% gain in the NASDAQ. For the full year, the TBSI is up a very impressive 63.0%. While this gain was good enough to give it a comfortable lead over the 53.7% year-over-year increase in the S&P 500, it still lagged the 72.0% gain in the NASDAQ, Sub sector multiples are also meaningfully higher than they were at this time last year.The sub sector revenue multiple jumped from 0.5x to 0.7x, while the EBITDA multiple spiked from 6.6x to 9.3x.