J2 Global Communications Inc. on Wednesday said it bought Venali Inc., an Internet fax messaging service provider, for about $17 million.
The acquisition ends litigation between J2 Global, a Los Angeles company, and Miami-based Venali. Venali sued J2 Global in 2006, accusing J2 of illegal activity and unfair competition in the Internet fax market.
Venali’s assets include its messaging business, which generated about $10 million in revenue in the last 12 months, and its U.S. and foreign intellectual property.
J2 Global enables companies in 49 countries to outsource their messaging and communications services.
“We are excited to bring Venali and its numerous Fortune 500 customers to J2 Global,” Chief Executive Hemi Zucke said in a statement. “We intend to bring Venali’s customers substantial benefits, including expanded service offerings and industry-leading customer support.”
J2 Global shares were down 22 cents, or about 1 percent, to $21.92 in late trading on the Nasdaq.