Vonage has made another acquisition, as the company continues to expand its presence in the business market. They have announced an agreement to acquire the privately-held UCaaS provider SimpleSignal for $25.25M.
That’s about 1.5 times the company’s annual revenue according to the PR, which therefore work out to $16-17M. SimpleSignal boasts 1,600 customers, whom they reach mostly through channel partners. That channel depth is a significant part of what Vonage is after in this deal. It helps that both companies work off of a Broadsoft-powered platform, which will smooth the integration.
It’s vonage’s third inorganic move in its effort to become a power in the SMB space. In 2013 they bought Vocalocity, and in 2014 the target was Telesphere. For SimpleSignal, Vonage will pay for the deal with $20M in cash and the balance in stock. They expect to achieve $1.7M in annualized synergies in 2016.
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