Business VoIP Featured Article

Bandwidth to Finalize Acquisition of London-based Voxbone

November 04, 2020

By Tracey E. Schelmetic, Business VoIP Contributor

Nearly all companies in 2020 are finding it necessary to prioritize voice, video, and text communications as an element of their “digital transformations.” At the center of this challenge is a critical need for a reliable worldwide cloud communications platform and network. This need has prompted several mergers between platforms. The most recent is between American company Bandwidth and British company Voxbone.

Raleigh, North Carolina-based Bandwidth recently announced that it has acquired Voxbone, a London-based international enterprise cloud communications company, for an enterprise value of $519.4 million. The sale price will include consideration to Voxbone shareholders of cash in the amount of approximately $413 million with the remainder being paid in 663,394 shares of Bandwidth Class A common stock with a value of $106.4 million.

The companies say the merger will make the combined organization a global powerhouse in cloud communications for business customers. Voxbone is a leading European-based communications platform and IP voice network.

“Bandwidth’s deep US presence and Voxbone’s world-wide platform across 60+ countries will serve enterprises in countries representing 93 percent of global GDP,” said David Morken, Co-founder, Chairman and CEO of Bandwidth, in a statement. “Today’s announcement accelerates our international strategy by several years. Our current and future customers will benefit from using a unified software platform, network and team to serve people around the world.

Voxbone’s platform is currently used by about 900 enterprises, including brands like Uber, Zoom, 8×8 and Skype. At the close of the acquisition, Bandwidth will reportedly power 11 out of 12 of Gartner’s Magic Quadrant Leaders for unified communications-as-a-service (UCaaS), call center-as-a-service (CCaaS) and meeting solutions enterprises. Going forward, Voxbone will operate under the Bandwidth brand.

“We’re thrilled to welcome this pioneering team to Bandwidth and congratulate them on their tremendous growth,” added Morken.

The acquisition represents a tremendous opportunity for Bandwidth, according to the company, as analyst group IDC has projected that worldwide spending on communications-as-a-service will be $17.7 billion by 2024. 

Edited by Maurice Nagle



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