Vonage Holdings To Buy Privately-held NewVoiceMedia For $350 Million In Cash

(RTTNews) - Vonage Holdings Corp. (VG) on Thursday agreed to acquire privately-held NewVoiceMedia for an equity price of $350 million paid in cash. NewVoiceMedia is an industry-leading pure-play, cloud Contact Center-as-a-Service (CCaaS) provider.

The acquisition combines Vonage's robust UCaaS and CPaaS solutions with NewVoiceMedia's pure-play cloud contact center offerings, providing an end-to-end communication experience for a company's employees and customers.

The deal will advance Vonage's strategy to provide an integrated, cloud communications platform, and strengthens Vonage's presence with mid-market and enterprise customers.

It also positions Vonage at scale in the high-growth, global cloud contact center market and deepens CRM integrations and strategic go-to-market relationships with CRM providers, especially Salesforce.com.

Upon closing, NewVoiceMedia's senior leadership team and its more than 400 employees, comprised of talented business leaders, skilled technologists, and a strong sales organization, will join Vonage. NewVoiceMedia will continue to be led by Dennis Fois.

Together, Vonage and NewVoiceMedia will be addressing a total addressable market that is expected to grow 60% over the next four years to approximately $80 billion, according to IDC.

Under the agreement, NewVoiceMedia shareholders will receive equity consideration of $350 million. Vonage is financing the acquisition through a combination of existing revolver capacity, cash on hand and cash on the balance sheet of NewVoiceMedia.

The company expects to realize annual run rate synergies of approximately $10 million by year-end 2019 and meaningfully higher by year-end 2020, which include revenue synergies from cross-selling and cost synergies from cost of service and G&A savings.

The transaction is expected to close in the fourth quarter of 2018 and is subject to standard regulatory review and customary closing conditions.