Telefonica S.A. (TEF) has decided to acquire VoIP services and application specialist Jajah Inc for a consideration of Euro 145 million or approximately $207 million, in an all-cash transaction. Jajah offers Internet calling that enables its customers to bypass long-distance fees by connecting their calls over the Internet. Industry sources reported that several companies like Cisco System Inc. (CSCO) and Microsoft Corp. (MSFT) were also eyeing to bag Jajah. Telefonica had beat out those two companies in the bidding.
Jajah services are currently used in around 200 countries by approximately 25 millions of people and are integrated into everyday instant messaging like Yahoo! Inc’s (YHOO) messenger and social media applications like Twitter, as well as through its own Jajah direct-to-consumer offer. The company’s business solutions provide seamless IP communications services across the organization, regardless of location or device and are used by several small-to-medium and large enterprises throughout the world.
Telefonica is the largest telecom carrier in Spain which has operations in other parts of Europe and Latin America. Globally, Telefonica has more than 260 million customers in 25 countries. Acquisition of Jajah will boost up Telefonica’s capabilities to offer cutting-edge on-line voice communications services to its customers. Jajah’s managed services enable mobile operators, landline carriers, cable companies, technology companies and other businesses to adopt its voice solutions with minimal investment and time to market. Telefonica has decided to keep the Jajah brand.
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