Fusion Connect Raises $55 Million in New Investment Round, Reduces Debt

Fusion Connect is primed for further growth with a $55 million new investment round and a refinanced $60 million credit facility.

The new investment round and refinancing are part of an overall recapitalization of Fusion Connect’s balance sheet. It provides full funding for its long-term growth strategy, while simultaneously reducing debt by over 80%.

Following receipt of required regulatory approvals, Morgan Stanley Private Credit, via its affiliated or managed funds, will become the majority shareholder in the company.

The new capital structure enables the company to pursue organic growth. It will accelerate investments in product development, sales and marketing, and human capital. In addition, it will invest in a next-generation client management portal for midsize and enterprise clients.

Best Financial Standing in Fusion Connect’s History

Mario DeRiggi is Fusion Connect‘s chief revenue officer. He said Fusion now has the best financial standing in the company’s history.

Fusion Connect’s Mario DeRiggi

“This means we will be able to have more dedicated human and financial resources to substantially expand our reach within the partner community,” he said. “Now more than ever, we will be able to meet partners where they are, when they need us, and do that with unmatched service levels. Add to that our comprehensive service guarantee and we are now providing a truly unmatched, frictionless partner experience that empowers our partners to deliver meaningful outcomes and expand revenue.”

The channel has always been a core part of Fusion Connect’s strategic growth, DeRiggi said.

“We will continue to work with our partner community to offer a comprehensive suite of technology solutions and unmatched partner experience to best meet the needs of their end user customers and accelerate business outcomes,” he said. “Our commitment to our partners’ success is what differentiates us from our competitors. Our goal every day is to make the lives of our partners easier. And this new funding will give us added flexibility to further invest in our partners’ success. We constantly engage and listen to our partners’ needs. We will continue listening and making improvements that benefit our partners and their clients.”

What Channel Partners Need

Channel partners want suppliers that are reliable, flexible and able to provide “flawless” service to their customers, DeRiggi said.

“Fusion Connect is well positioned now and, in the future, to meet this challenge,” he said.

Partners can expect more engagement in existing and new markets, DeRiggi said.

Ashwin Krishnan is co-head of Morgan Stanley Private Credit North America.

“We look forward to partnering with Fusion Connect in this next phase of the company’s journey that builds on material improvements in the business’ operational metrics and product portfolio driven by the talented management team,” he said.