Vonage Acquires Vocalocity For $130 Million

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Vonage Holdings Corp. has agreed to buy out Vocalocity for $130 million in cash and stock.  Vocalocity is a software-as-a-service company that offers cloud-based communication for small and medium businesses.  The deal is split into $105 million in cash and $25 million in Vonage common stock.  Vocalocity has been one of the fastest growing providers in the SMB hosted VoIP market.  Vocalocity hit revenues of $28 million in the first half of 2013.  Their first half 2013 revenues were 39% higher than the same period the year before.  The company ended their second quarter with 21,000 customers.

“Entry into the SMB segment is a key element of the growth strategy we outlined last year,” stated Vonage chief executive officer Marc Lefar. “Vocalocity accelerates our entry with a comprehensive, high-quality product suite and scalable platform. In addition, Vocalocity’s software orientation, customer focus and innovative approach are a natural fit with our culture.”

“As business VoIP moves from the early adopter phase to the mainstream, a Vocalocity and Vonage combination delivers the scale, quality and feature set to best serve customers and create phenomenal opportunities for growth. I am impressed with what Vonage has built, and look forward to joining the team,” added Vocalocity CEO Wain Kellum.

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