FISION Expands Fortune 500 Client Base with Powerful Merger

DENVER, CO / ACCESSWIRE / August 31, 2018 / FISION Corporation (OTCQB: FSSN) recently announced a merger agreement with Continuity Logic LLC that offers numerous benefits individually and collectively to both companies. FISION’s “front of the house” sales and marketing solution is perfectly complemented by Continuity Logic’s “back of the house” enterprise integration & user-friendly application interface. The agreement will allow both companies to immediately leverage each others customer base and sales pipeline, with no current overlapping of clients.

What this agreement essentially does is open the door to new markets, introduces cross-selling opportunities, and improves profitability through economies of scale. The software-as-a-service (Saas) industry reached $100 billion in 2016 and is projected to reach $151 billion by 2020, an impressive 14% CAGR. This growth is being driven by the ability of SaaS to enable the collaboration of large and decentralized teams, provide easier access to data, all while reducing the burden of upgrades, maintenance, and safeguarding information.

The companies that are going to rise to the top in this industry are the ones that are able to adapt quickly and see the competitive advantages of working with, or in this case merging with, other services that complement their own.

Strategic Benefits of Merger

The merger carries both short and long term competitive advantages. In the near term both companies are immediately able to leverage each others customer bases and sales pipeline with no current overlap in customers. This allows Continuity Logic to expand its channel partner network by 4x, and give FISION immediate access to an expericenced direct sales team that is 3x their current sales force. As well, both companies employ similar revenue models; a one-time setup fee based on the initial requirements of the new customer, followed by a monthly license fee calculated on the number of users and/or locations serviced, with standard 36 month contracts setup on automatic renewals.

In the long term the merger provides a stronger M&A platform, gains R&D talent, strengthens the board of directors, and provides a “stickier” deployment strategy that allows for an easier renewal of existing customers while simultaneously providing opportunity for the “land and expand” business model. The merger will also allow for a dramatic cost reduction and higher margins due to the more efficient FISION operational platform.

Two Highly-Complementary Technology Platforms

It is not very often that two compaies in the same industry have so little overlap in the services they offer, which is why this proposed merger appears to be such a great fit for both FISION and Continuity Logic. With two patents granted, and an additonal two patents pending, the combined forces of these two companies post merger will create a competitive barrier to entry, an important cornerstone of any company that is looking to sign new clients and keep them.

The ability for the combined technology platforms, into which there has already been a $24M combined investment, to drive top line revenue and bottom line profit while simultaneuously simplifying business continuity, recovery and risk management is what makes this merger particularly attractive. When you add in the fact that Continuity Logic has been named a Gartner Magic Quadrant leader for 4 years running, and FISION’s high margin (80%+), recurring revenue (77%+ margins) customer base of Fortune 500 companies, the merger looks like exactly the right fit for both companies.

Fortune 500 Cross Selling Opportunties

FISION Corp. and Continuity Logic both have impressive client bases that include a number of major global enterprises, with 36% and 50% of their respective client bases being Fortune 500 companies. The opportunities to cross sell and “land and expand” are tremendous. Besides immediately doubling their sales pipeline, this merger represents a 2x revenue lift potential with existing clients since FISION and Continuity’s platforms do not overlap one another.

“Our offerings are highly complementary and synergistic, with zero overlap in terms of our Fortune 500 client base,” said FISION CEO Mike Brown in the press release announcing the deal. “We see tremendous cross sell opportunities with all-star roll-up of talent, experience, and technical know-how.”

Looking Ahead

FISION Corporation’s acquisition of Continuity Logic represents a compelling opportunity for shareholders given the larger addressable market, cross-selling opportunities, and potential cost savings. These dynamics have the ability to expand its market capitalization, expedite revenue growth, and improve profitability.

“There is only one thing better for our customers than having a powerful, cloud-based platform like FISION, and that is having two,” said Mr. Brown in the recent press release. “We could not be more excited to leverage the synergies of our combined organizations and together accelerate our growth.”

For more information, visit the company’s website at www.fisiononline.com or read more details about the transaction in their 8-K filing with the SEC.

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SOURCE: Tamarack Advisors

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