VoIP provider Vonage is expanding in the business market with the acquisition of Telesphere Networks, a provider of unified communications-as-a-service to larger enterprises in the SMB sector, for USD 114 million in cash and stock. Telesphere offers cloud voice and UCaaS services, including advanced call centre solutions, collaboration, mobile office and HD multi-point video conferencing. Telesphere has provided cloud communications since 2006 and has built a national, cloud platform aimed at larger SMBs with regionally distributed offices.
Telesphere's 2014 revenues are expected to be approximately USD 40 million, with more than USD 50 million of revenue already under contract for 2015. Clark Peterson, CEO of Telesphere, will join Vonage as President of Telesphere, a Vonage company, upon closing. He has more than 25 years of experience in the communications industry and currently serves as Chairman of the Cloud Communications Alliance.
Under the agreement, Telesphere shareholders will receive USD 91 million in cash and 6.86 million shares in Vonage common stock. The transaction is expected to close in 2014, pending regulatory approvals.
