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Wheelings & Dealings; Vertical, Fulton Merge

SIP Trunking Featured Article

June 06, 2014


Wheelings & Dealings; Vertical, Fulton Merge


By Paula Bernier
Executive Editor, TMC

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Unified communications service provider Vertical Communications (News - Alert) this week announced it has merged with national systems integrator Fulton Communications. Financial details of the deal were not made public.


In an interview yesterday with TMCnet, Vertical Communications President and CEO, Peter Bailey explained that in the past Vertical reached enterprise customers with its direct sales force and SMBs via channels, but its direct effort had been vastly outperforming its channel business. Vertical came to the conclusion that, with the market recovering from the recession, it was ready to take a leap forward in market share by creating a new effort to reach more customers. So a couple of years ago it partnered with Fulton, which is one of the largest integrators in the country.

Fulton quickly became Vertical’s largest dealer, said Bailey, calling it a greenfield selling operation. He added that Fulton went from zero to $30 million in revenues in a 5-year time span, he said, so they generated great sales growth, and they really knew how to solution sell – which he said is what UC needs.

So, ultimately, Vertical decided to bring Fulton in house.

As a result, both companies have become bigger and stronger and enhanced their brands, he said, adding that the newly expanded Vertical Communications is still relatively small compared to UC competitors Avaya and Cisco (News - Alert). Vertical now will compete in all NFL markets and will also go to tertiary markets unless it already has a strong channel partner or partners there.

Bailey added that in addition to being a key partner to Vertical, Fulton also has been Mitel’s (News - Alert) largest reseller over the past few years. The newly merged company, he explained, will continue to partner with Mitel and sell its products where it makes sense.



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