Vonage Acquires SimpleSignal, Moves Deeper Into SMB

March 16th, 2015 by · Leave a Comment

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.

Categories: Mergers and Acquisitions · Unified Communications · VoIP

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