Bandwidth cloud company buys Voxbone for €446m
Cloud communications company Bandwidth has bought a European rival, Voxbone, for €446 million.
Bandwidth, which has a market cap of US$4.53 billion but quarterly revenues of just $76.8 million, will buy Voxbone from its majority owner, London-based private equity investor Vitruvian Partners.
David Morken, co-founder, chairman and CEO of Bandwidth, said: “We are bringing together leading domestic and international enterprise cloud communications platforms to supercharge global cloud communications for our customers. Bandwidth’s deep US presence and Voxbone’s worldwide platform across 60+ countries will serve enterprises in countries representing 93% of global GDP.”
Voxbone shareholders will get €338 million in cash and €108 million in Bandwidth shares.
According to Vitruvian, Voxbone operates in 55 countries and 8,000 cities, providing wholesale voice over IP (VoIP) services to enable cloud communications providers, international carriers, and enterprise contact centres to extend the reach of their voice.
It provides virtual local phone numbers as inbound SIP trunks or direct inward dialling (DID) numbers, with its proprietary.
Voxbone’s annual sales are €30 million, says Vitruvian, which first invested in the company five years ago. The company, founded in 2005, has 100 employees.
Morken said: “Voxbone’s platform is trusted by approximately 900 enterprises, including brands like Uber, Zoom, 8x8 and Skype. We’re thrilled to welcome this pioneering team to Bandwidth and congratulate them on their tremendous growth.”
Bandwidth said that, following the merger, which is expected to close at the end of October, it “will play an even greater role in leading the transformation of enterprise cloud communications, enabling companies around the world to develop, launch, and hyperscale applications and customer experiences using rich voice and text”.