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Vonage to buy Vocalocity for USD 130 mln

2013-10-10 13:59:00| Telecompaper Headlines

(Telecompaper) VoIP provider Vonage has agreed to acquire privately-held Vocalocity, a provider of UCaas services to SMEs, for USD 130 million, including USD 105 million in cash and USD 25 million in Vonage stock. The transaction is expected to add to adjusted earnings per share from 2015. The transaction is expected to close in the fourth quarter. 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. Vocalocity reported first-half revenue up 39 percent year-on-year to USD 28 million, with an annual run rate of more than USD 56 million. Vonage will finance the transaction through cash and credit. The company expects to complete its USD 100 million share buyback programme by the end of next year, as planned.

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Category:Telecommunications

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