Quick Facts
FONT-SIZE Plus   Neg
Share SHARE

Vonage Holdings To Buy Vocalocity In $130 Mln Cash-stock Deal - Quick Facts

RELATED NEWS
Trade VG now with 

Vonage Holdings Corp. (VG: Quote), a provider of communications services connecting people through cloud-connected devices worldwide, said Thursday that it agreed to acquire privately-held Vocalocity Inc., an industry-leading Software as a Service or SaaS provider of cloud-based communication services to Small and Medium Businesses or SMBs for $130 million. The purchase price includes $105 million in cash and $25 million in Vonage common stock.

The Agreement has been unanimously approved by the boards of directors of Vonage and Vocalocity. Vonage expects that the transaction will be accretive to adjusted Earnings Per Share and on an EBITDA multiple basis in 2015.

The company noted that a portion of the purchase price will be deposited into escrow to partially secure Vonage's indemnification rights under the Merger Agreement in respect of any breach of Vocalocity's representations, warranties or covenants as well as certain other indemnifiable matters.

During the first half of 2013, Vocalocity had revenue of $28 million and growing, implying an annual run rate of greater than $56 million.

Upon closing, Vocalocity CEO Wain Kellum, will join Vonage as President, Business Services, and become a member of the Company's senior leadership team.

Vonage expects to achieve synergies from network operations and the use of technology for serving customers. Synergies in 2015 are estimated to be recurring and in the high single-digit million dollar range.

Vonage noted that it is financing the transaction through $30 million of cash from the balance sheet and $75 million from its credit facility. The company will continue to execute on its balanced approach to capital allocation and expects to complete its $100 million share repurchase program by the end of 2014 as planned.

The transaction is expected to close in the fourth quarter of 2013, subject to customary closing conditions.

Register
To receive FREE breaking news email alerts for VONAGE HLDGS CORP and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Apple Inc. said Tuesday after the markets closed that its third quarter profit rose 12% from last year, as sales surged and margins improved amid strong sales of its iPhones and Mac computers. The company's quarterly earnings per share also came in above analysts' expectations, but its quarterly sales fell short of analysts' forecast. United Nations Secretary-General Ban Ki-moon on Tuesday urged both Israelis and Palestinians to stop the fighting that has been raging for the past two weeks in the Gaza Strip, and pleaded with the two sides to return to dialogue with the aim of addressing the underlying causes of the repeated cycles... After moving notably higher in early trading on Tuesday, stocks continued to perform well throughout the session. The gains on the day offset the modest weakness that was seen in the previous session, extending the recent back-and-forth movement by the markets.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.