Fax Chronicle

EasyLink has been for sale for awhile now and they have danced or asked to dance with just about every major fax player in the space. Their EDI business made them less attractive to fax players and in the end it looks like the deal went to someone making multiple fax plays in the space. Someone I respect a great deal works with EasyLink and I have been very impressed with how he operates. It remains to be seen whether ICC will get value for their $67 million, but they do have some good pieces in place.

Their RapidFax service has been front and center for their internet fax products and from all reports has been doing very well. They’ve been aggressively going after J2/eFax for market share with their advertising buys.

EasyLink was rumored to have had some outages this quarter and Concord Technologies created a bit of a stir when they came out with a quick start program for customers with no contract if they needed a new provider quickly to change from those that had outages.

This market is far from consolidated and there will be more of these before the year is out.

Internet Commerce Corporation Announces Definitive Agreement to Acquire EasyLink Services Corporation

NORCROSS, Ga. & PISCATAWAY, N.J.–(BUSINESS WIRE)–Internet Commerce Corporation (“ICC”) (NasdaqCM:ICCA) and EasyLink Services Corporation (“EasyLink”) (NasdaqCM:EASY) today announced a definitive agreement for ICC to acquire EasyLink. Under the terms of the agreement, ICC will pay $5.80 per share in cash for all of the outstanding shares of EasyLink, for an aggregate transaction value of approximately $67 million. The acquisition is expected to be completed in the third quarter of 2007, subject to customary closing conditions and regulatory approvals as well as stockholder approval from both companies.

ICC’s acquisition of EasyLink brings together two market leaders with a shared vision for helping organizations of all sizes improve the flow and exchange of essential data and business documents. By combining forces, ICC creates an entity that brings to market an unrivaled portfolio of offerings, accelerates growth in core network services, gives greater presence in international markets, expands penetration in key industry verticals and extends into new product segments.

“ICC has been dedicated to its ‘Growth with Profitability’ strategy for three years, and EasyLink represents a perfect fit for expanding our business under that strategy,” said Tom Stallings, ICC’s chief executive officer. “By bringing these two companies together, we capitalize on an opportunity to increase top-line growth and achieve significant cost synergies across the board. A larger and more broadly based ICC that makes the most of its customer relationships, innovative technologies, talented employees and geographic expansion will become a stronger force in the market, providing operational, business and financial value to customers, employees and stockholders.”

Stallings added that ICC is 100% committed to applying the resources required to expand market share, integrate technologies and infrastructure, and streamline operations while ensuring that the company’s product offerings and technical support capabilities deliver the best customer experience available.

“This proposed acquisition reflects our resolve to proceed in the best interest of our customers, employees and stockholders,” said Tom Murawski, chairman and chief executive officer of EasyLink. “Together EasyLink and ICC will build a company positioned to deliver solid financial performance, innovative technologies, high service standards and an energized workforce. ICC is committed to success globally for its stakeholders, and I strongly believe this acquisition is right for all of EasyLink’s constituents.”