The next stage of Vonage's ongoing rise in business communications has been unveiled. The UCaaS and CPaaS provider has announced an agreement to acquire NewVoiceMedia in a move to add further muscle in the enterprise market.
NewVoiceMedia specializes in Contact-Center-as-a-Service, which Vonage sees as complementary to the UCaaS and CPaaS platforms it brings to market today. NewVoiceMedia's customer list spans some 700 mid-market and enterprise customers, including Adobe, Siemens, Time Inc., FundingCircle, and Rapid7. According to Vonage, the combined company will be able to target an addressable market that will reach $80B in four years.
The purchase will cost Vonage $350M in cash, which works out to an enterprise value of some 3.8x projected 2019 revenue. Vonage expects to realize some $10M in annual run-rate synergies by the end of 2019 from a combination of cost savings and cross selling, with more to follow the year after that.
Vonage has come a long way from its origins in the consumer VoIP space. Over 60% of the company's revenues now come from the business side of things.