Vocalocity, an Atlanta startup that provides communications services to small- to medium-sized businesses, has agreed to be acquired by Internet phone giant Vonage, the companies announced Thursday.
Holmdel, N.J.-based Vonage is largely focused on Internet-based phone service to consumers. The deal will give the company a stronger foothold into providing voice service to businesses.
The $130 million deal is expected to close before the end of the year, Vonage said. It is being financed through $105 million in cash and $25 million in Vonage stock.
Vocalocity, founded in 2006, provides cloud-based communications systems. Vocalocity had $28 million in revenue in the first half of 2013, up 39 percent from the year-ago period, according to a news release announcing the deal. The company had 21,000 customers at the end of second quarter.
“Entry into the (small- to medium-sized business) segment is a key element of the growth strategy we outlined last year,” said Marc Lefar, Vonage CEO, said in the release.
Vonage said the overall North American “voice” business for small- and medium-sized companies is worth $15 billion and comprises 32 million phone lines. Approximately 85 percent of smaller companies get their phone service from major carriers like AT&T, Vonage said, at higher prices than those charged by carriers like Vocalocity.
Vocalocity CEO Wain Kellum will join Vonage as its president of business services upon closing of the deal, the companies said.
