Internet fax to email service provider j2 Global Communications Inc. (JCOM) has recently completed three new acquisitions. Prompted by the increasing use of digital faxing services to reduce costs and improve security, j2 Global has acquired related service fax and voice service providers to expand globally.

New acquisitions include: (1) voice assets of Realty Telecom Ltd, a UK-based provider of advanced telecommunications services; (2) email assets of Quexion LLC, a provider of hosted email and email marketing services; and (3) fax assets of Comodo Communications Inc., a provider of fax to email solutions. Although the financial terms of these acquisitions have not been disclosed, j2 Global declared that these events will not materially impact its financials.

j2 Global’s flagship eFax line of products is now available in 3,500 cities across 46 countries. This indicates a growth of around 72% in the last three years. We believe management is effectively executing the company’s businesses, even in a sluggish economic environment. j2 Global’s business is extremely sensitive to overall macroeconomic factors, particularly to any weakness in credit markets. The company has a vast majority of credit-sensitive customers from lending and mortgage industries and other financial institutions.

According to our view, the company’s strong financial position and diversified products/services pipeline, in synergy with the long-term growth prospects for outsourced value-added messaging services, may drive valuation levels higher in the near future.

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