Vonage Holdings Corp. to Acquire Vocalocity, Inc.
Accelerates Entry into Rapidly Growing Market for Hosted VoIP Communications for Small and Medium Businesses
Press Release: Vonage Holdings Corp. – 4 hours ago
HOLMDEL, N.J., Oct. 10, 2013 /PRNewswire/ -- Vonage Holdings Corp. ( VG), a leading provider of communications services connecting people through cloud-connected devices worldwide, has entered into a definitive agreement to acquire privately-held Vocalocity, Inc. ("Vocalocity"), an industry-leading Software as a Service (SaaS) provider of cloud-based communication services to Small and Medium Businesses ("SMBs").
Vonage will acquire Vocalocity for $130 million, including $105 million in cash and $25 million in Vonage common stock. The transaction is expected to be accretive to adjusted Earnings Per Share ("EPS")1 and on an EBITDA1 multiple basis in 2015.
Vocalocity is one of the fastest growing providers in the SMB hosted VoIP market. During the first half of 2013, Vocalocity had revenue of $28 million and growing, implying an annual run rate of greater than $56 million. First half 2013 revenues were 39% higher than the same period in the prior year. Vocalocity was EBITDA1 and free cash flow1 positive during this period. Vocalocity ended the second quarter with 21,000 customers.
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1) This is a non-GAAP financial measure.
2) Frost and Sullivan North American Hosted IP Telephony and UCC Services Market report, July 2013
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