Broadsoft (BSFT) Completes SDD Acquisition; Announces UC-One Hospitality Offering

Broadsoft (Nasdaq: BSFT) announced a new, hosted Unified Communications offering for the hospitality industry, UC-One Hospitality. The acquisition of Systems Design & Development, Inc. (SDD), a software and services provider to many of the largest and most prominent global hotels, resorts, convention and meeting facilities, extended stay, and fractional ownership properties, enables this offering.

Businesses throughout the hospitality industry are actively seeking cloud-provided communications services to replace their aging PBX solutions and align with their corporate IT cloud migration strategies. UC-One Hospitality, integrates BroadSoft's Unified Communications (UC) and SDD's Jazz Fusion capabilities, enabling a tight integration with the diverse and distributed collection of hospitality systems, property networks and hotel operational practices. UC-One Hospitality will allow hospitality properties to create customized communications services using dynamically targeted pricing, packaging, service authentication and digital content presentations.

"Many of the hospitality premise-based PBX solutions are reaching their end-of-life, creating a need for the industry to seek new innovative communication alternatives that better align with their integrated guest services strategies," said Michael Tessler, chief executive officer, BroadSoft. "We believe the services capabilities of SDD, when integrated with our Unified Communications services, will unlock a sizable new vertical market opportunity for our service provider customers."

By leveraging UC-One Hospitality, service providers can deliver a bundled offering (including connectivity, minutes, unified communications and property management system data integration). Service providers can also eliminate the capital investment, special knowledge and operational standards required to support diverse and changing collections of hospitality enterprise systems, hotel on-premise systems and their necessary proprietary integrations and certifications.

We believe UC-One Hospitality enables hotel and resort properties to rapidly transition from premise-based PBX's to more productive, cloud communications services and to experience several key benefits and:

• Enhances productivity by enabling new business processes across multiple hotel premises
• Enables reduction of IT spend and ability to re-vector these resources to guest/customer satisfaction, cost effectively
• Eases management of a single solution across a portfolio of hotel properties
• Provides immediate access to new services and capabilities, without the need for an upgrade
• Improves cost management due to lower costs relative to on-premise PBX, shift from CAPEX to OPEX and flexibility to scale up and down

"We are very excited to add our hospitality industry knowledge and technology capabilities with the communications industry's leading provider of cloud powered Unified Communications," said Ron Tarro, chief executive officer, SDD. "Joining BroadSoft positions us to accelerate our growth and bolster our offering for the hospitality market."

Tessler adds, "The SDD team has a deep understanding of the business challenges hotel and property management companies face; I am very excited to have such an experienced team -- which brings strong relationships with leading global hospitality brands -- join BroadSoft."

The acquisition is expected to contribute over $1 million in revenue in 2014 and be dilutive to 2014 non-GAAP earnings per share by approximately $0.01 to $0.02.

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