APP: Apptix ASA Sells US Subsidiary & Operations

Herndon, VA and Oslo, Norway, November 15, 2016

Apptix ASA, today announced it has sold Apptix, Inc. 
(the "Company"), its US-based subsidiary and operations 
to Fusion Telecommunications International Inc. 
("Fusion") (NASDAQ: FSNN), a leading cloud services 
provider delivering an integrated suite of advanced 
cloud communications, cloud connectivity, and cloud 
computing solutions to business customers nationwide.  
The transaction was valued at USD 28.0 million in cash 
and equity paid at closing, less net debt obligations, 
transaction fees and expenses. 

Sale of US Operations 
On November 14, 2016 Apptix ASA signed and closed a 
Stock Purchase Agreement ("SPA") with Fusion for the 
sale of the Company, its only subsidiary and business 

Fusion is a leading provider of integrated cloud 
solutions to small, medium and large businesses. 
Fusion's advanced, proprietary service platform enables 
the integration of leading edge solutions in the cloud, 
including cloud voice and unified communications, 
contact center, cloud connectivity, cloud computing and 
additional cloud services such as storage and security.  
Fusion is listed on the NASDAQ Capital Market under 
ticker FSNN. The Company will be a wholly-owned 
subsidiary of Fusion and will be a major component of 
Fusion's cloud-based Business Services division.  

The Apptix/Fusion combination creates a business with 
about USD 145 million in annual revenues, substantial 
synergies in the form of cost savings, operational 
strength and diversified customer base, of which Apptix 
ASA shareholders will control 16.6% post transaction.

"With the numerous initiatives we have undertaken since 
2014 and culminating with the Fusion transaction, we 
believe we have provided our shareholders with the best 
possible cash outcome along with an additional 
opportunity to participate in the future growth of 
Fusion with equity participation. We have great 
confidence in Fusion's strategy and its ability to 
create significant value. Importantly, the two companies 
share a common vision and culture which provides a great 
foundation for the integration of our teams," commented 
Johan Lindqvist, Chairman of Apptix ASA.

Matthew Rosen, Fusion's Chief Executive Officer, 
said, "We are thrilled to announce our acquisition of 
Apptix, which continues Fusion's previously announced 
strategy to build a market leading portfolio of 
integrated cloud service offerings and to achieve 
greater scale through disciplined, targeted 
acquisitions. The addition of Apptix deepens Fusion's 
comprehensive service portfolio with a focus on 
extending these services to the desktop and IT 
infrastructure of our customers. I am especially pleased 
to further grow our team of seasoned, highly trained 
cloud technology professionals.

"We have gotten to know the Apptix team well over the 
past several months and have been tremendously impressed 
with the company's business, its customer base, its 
cloud computing infrastructure, and its engineering and 
development capabilities. We firmly believe Apptix is a 
great strategic fit for Fusion and are excited about our 
company's next chapter of growth," Mr. Rosen concluded. 

Apptix ASA was paid USD 23.0 million in cash at closing 
(before any transaction related expenses). Apptix ASA 
also received a total of 2,997,926 shares of Fusion 
common stock representing 19.9% of the outstanding 
Fusion common stock immediately prior to closing and 
16.6% immediately following the close.   Based on the 
weighted average stock price of the Fusion shares over 
the past 180 days, the aggregate equity consideration 
was valued at USD 5.0 million. The transaction was 
structured as a "debt-free, cash-free" deal whereby 
Apptix ASA retained the cash balances of the Company at 
closing of approximately USD 3.7 million.  Apptix ASA 
was also required to satisfy any of the Company's 
outstanding funded debt obligations at closing which 
totaled approximately USD 7.1 million. Additionally, 
Apptix ASA incurred approximately USD 2.3 million in 
transaction related fees and expenses in connection with 
the transaction. There was no escrow adjustment pursuant 
to the transaction and all indemnifications along with 
representations & warranties expired with the closing. 
Apptix ASA will be receiving approximately USD 17.3 
million in net cash proceeds or approximately NOK 1.80 
per share. It is the Board of Directors' intention to 
distribute NOK 1.65 per share as a dividend in December 

Of the total equity received by Apptix ASA, 50% of the 
shares, or 1,498,963 shares, were transferred to Apptix 
ASA at closing with the remaining 50%, or 1,498,963 
shares, being transferred to Apptix ASA upon the receipt 
of two state public utility regulatory commission 
approvals which are expected within the next 120 days.  

The Fusion shares received by Apptix ASA will be subject 
to Regulation 144 of the United States Securities Act of 
1934 restricting the sale of the Fusion stock for up to 
12 months following the closing date.  Fusion has agreed 
to file a registration statement with the US Securities 
and Exchange Commission within 12 months of closing, 
making the shares freely tradable on the NASDAQ 
exchange. During this period of time, the shares will be 
held and owned by Apptix ASA.

The Company's President and Chief Operating Officer will 
not remain with the Company post-transaction. 

Pacific Crest Securities, a division of KeyBanc Capital 
Markets, represented Apptix ASA and the Company in this 

Forward Looking Statements
Matters discussed in this announcement may constitute 
forward-looking statements. Forward-looking statements 
are statements that are not historical facts and may be 
identified by words such 
as «believe», «expect», «anticipate», «strategy», «intend
s», «estimate», «will», «may», «continue», «should» and 
similar expressions. The forward-looking statements in 
this release are based upon various assumptions, many of 
which are based, in turn, upon further assumptions. 
Although the Company believes that these assumptions 
were, or are, as the case may be, reasonable when made, 
these assumptions are inherently subject to significant 
known and unknown risks, uncertainties, contingencies 
and other important factors which are difficult or 
impossible to predict and are beyond the control of the 
Company or may be erroneous or turn out to be erroneous 
for other reasons. Actual events may differ 
significantly from any anticipated development due to a 
number of factors, including without limitation, changes 
in public sector investment levels, changes in the 
general economic, political and market conditions in the 
United States and other world markets, the Company's 
ability to attract, retain and motivate qualified 
personnel, changes in the Company's ability to engage in 
commercially acceptable acquisitions and strategic 
investments, and changes in laws and regulation and the 
potential impact of legal proceedings and actions. Such 
risks, uncertainties, contingencies and other important 
factors could cause actual events to differ materially 
from the expectations expressed or implied in this 
release by such forward-looking statements. 

The information, opinions and forward-looking statements 
contained in this announcement speak only as at its 
date, and are subject to change without notice.  The 
Company does not undertake any obligation to review, 
update, confirm, or to release publicly any revisions to 
any forward-looking statements to reflect events that 
occur or circumstances that arise in relation to the 
content of this announcement. You should not place 
reliance on the forward-looking statements in this 

About Apptix 
Immediately prior to the aforementioned transaction, 
Apptix ASA (OSE: APP) was the premier provider of 
managed and hosted business communication, 
collaboration, compliance & security, and infrastructure 
solutions to mid-market and enterprise customers and 
blue chip channel partners.  Apptix was a cloud services 
pioneer and had almost 400,000 users under contract 
around the world. Apptix's comprehensive portfolio of 
cloud solutions included Microsoft Azure, Microsoft 
Office 365, Microsoft Exchange, Microsoft SharePoint, 
Microsoft Lync, VoIP, Servers on Demand, Enterprise 
Backup, Disaster Recovery, File Sync & Share, and 
Virtual Desktops. Apptix services were delivered over a 
highly reliable network leveraging best-in-class 
technology, housed in SSAE 16-compliant data centers, 
and backed by US-based 24/7 support. For more 
information, visit

For further information:

Johan Lindqvist (Chairman)
+46 733 55 09 35

Christopher E. Mack (President & COO)
+1 703 890 2800

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