J2 Shopping Spree Continues

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J2 Shopping Spree Continues
SugarSync employees

J2’s acquisition streak has continued unabated in the first quarter, as the Internet service provider said today it had added nine more companies to its portfolio.

The Hollywood company provides cloud services like Internet fax, email marketing and data storage and backup and has grown largely through acquisitions: over the course of 2013 and 2014 it has purchased 58 companies, mostly across North America and Europe.

The recent crop includes six data backup firms, an online fax firm, an email marketing firm and a spam security firm. Four of the companies are located in the United States, with five in Europe. Buying up small European firms is part of J2’s strategy to gain a local advantage.

“They’re all bringing us markets, technologies and talent,” said Chief Executive Hemi Zucker. “Integration and cooperation is something we do all the time. My focus and emphasis to our employees is to be always ready to integrate.”

Zucker said having a local presence in and knowledge of multiple European countries gives J2 an advantage that other companies do not have.

“Most American companies go into the U.K. and call it Europe,” said Zucker. “We are comfortable acting in eight languages and eight markets.”

Having a local presence also is important because companies want control of their data’s location for legal reasons.

“Businesses want their data to be stored in the country that is subject to their legal system,” said Zucker.

Zucker also said the employees J2 gains through acquisitions helps to refresh its ranks. This last round of acquisitions will add 30 employees to J2’s ranks of more than 1,500. “We really have a lot of people at high levels that join us through integration,” he said. “We really integrate talent versus just rolling up (companies).”

Asked whether J2 will continue its acquisition pace Zucker said: “The pace will continue as we see more opportunity in the pipeline, and our pipeline is full of opportunity.”

Technology reporter Garrett Reim can be reached at [email protected]. Follow him on Twitter @garrettreim for the latest in L.A. tech news.

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