Vonage Holdings Corp. (NYSE: VG) (the “Company”) has entered into an agreement to acquire privately-held NewVoiceMedia, an industry-leading cloud Contact Centre-as-a-Service (CCaaS) provider, for an equity price of $350 million paid in cash.
The acquisition combines Vonage’s robust UCaaS and CPaaS solutions with NewVoiceMedia’s pure-play cloud contact centre offerings, providing an end-to-end communication experience for a company’s employees and customers.
“We are thrilled to announce the acquisition of NewVoiceMedia, which represents a major step forward in the realisation of our strategic vision to deliver a differentiated, fully-programmable communications solution that drives more meaningful customer interactions and better outcomes for businesses,” said Vonage CEO Alan Masarek.
“This acquisition accelerates Vonage’s growth strategy and leadership position in cloud communications, strengthens our presence with global mid-market and enterprise clients, and deepens our integrations and key go-to-market relationships with CRM providers, especially Salesforce.com.”
NEWVOICEMEDIA PROVIDES SCALE IN HIGH-GROWTH, CLOUD CONTACT CENTRE MARKET
NewVoiceMedia is the largest privately-owned, pure-play, cloud contact centre company globally, and is a recognised leader in the space. NewVoiceMedia is in the Leader’s quadrant of the Gartner CCaaS Magic Quadrant for Western Europe, and was included for the third consecutive year on the Forbes Magazine Cloud 100, a list of the top 100 private cloud companies in revenue, sales growth, valuation and culture.
Over 700 primarily mid-market and enterprise customers rely on NewVoiceMedia for a range of customer engagement use cases, from inbound customer support to outbound sales, including worldwide brands like Adobe, Siemens, Time Inc., FundingCircle, and Rapid7.
Dennis Fois, CEO of NewVoiceMedia, commented, “Vonage and NewVoiceMedia share a powerful vision to serve businesses with cloud communications that connect employees and enable personalised conversations with their customers and prospects. Together, we can help businesses create richer experiences through a state-of-the-art, global, programmable cloud communication platform.”
NewVoiceMedia will continue to be led by Mr. Fois, who has more than 25 years of experience in international leadership, strategy, sales and marketing in the technology and financial services markets. Upon closing, the senior leadership team and its more than 400 employees, comprised of talented business leaders, skilled technologists, and a strong sales organisation, will join Vonage. Together, they will create an expanded customer experience centre of excellence.
VONAGE ADDRESSING A LARGE AND GROWING TOTAL ADDRESSABLE MARKET
Together, Vonage and NewVoiceMedia will be addressing a total addressable market that is expected to grow 60% over the next four years to approximately $80 billion, according to IDC. Within this, contact centre is a $9 billion market today, and with NewVoiceMedia, Vonage will be well-positioned to capture a healthy share of this opportunity with a recognised leader in the space.
“Vonage is acquiring a high-growth software company that brings a cloud-native contact centre solution that can be integrated with Vonage’s existing assets to create an expanded enterprise communications software suite and, as importantly, 400+ customer experience professionals, deployed globally,” observes Sheila McGee-Smith, President & Principal Analyst, McGee-Smith Analytics, LLC. “NewVoiceMedia is particularly well-positioned to address larger-scale deployments due to its global scale and strong partnership with Salesforce.com. Additionally, the NewVoiceMedia team will be a big part of jump-starting Vonage’s attack on the huge CCaaS market opportunity.”