– Leading North American and international cloud platforms come together to supercharge enterprise communications across 60+ countries representing 93% of global GDP
– Global enterprises will benefit from a unified software platform and network for the rapid launch and hyper-scale of communications applications and experiences
– Combination will accelerate and expand Bandwidth’s opportunity to serve $17.7 billion CPaaS market with a five-year CAGR of 33% (2019 to 2024)[1]
– Voxbone’s 2020 revenue is expected to be more than $85 million and up more than 25% year-over-year, and upon close will be accretive to Bandwidth’s non-GAAP gross margin and non-GAAP net income
Bandwidth (NASDAQ: BAND), a leading enterprise cloud communications company announced it has signed a definitive agreement to acquire Voxbone, an international enterprise cloud communications leader, for an enterprise value of €446 million EUR, representing a multiple of approximately six times anticipated Voxbone 2020 revenue. Voxbone has been majority-owned by Vitruvian Partners, a leading growth- and technology-focused investment firm headquartered in London, UK, since 2015. Voxbone is a leading European-based communications platform and IP voice network. Since 2005, their mission has been to simplify global communications for businesses by providing compliant, quality coverage that can be integrated with any contact center, conferencing platform or voice application.
Read More: CSI Partners With Arctic Intelligence To Provide Powerful Enterprise Risk Assessment Solutions
“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 world-wide platform across 60+ countries will serve enterprises in countries representing 93% of global GDP. 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,” said David Morken, Co-founder, Chairman and CEO of Bandwidth. “Voxbone’s platform is trusted by approximately 900 enterprises, including brands like Uber, Zoom, 8×8 and Skype. We’re thrilled to welcome this pioneering team to Bandwidth and congratulate them on their tremendous growth.”
Combination to Supercharge Cloud Communications:
Through this combination, Bandwidth will play an even greater role in leading the transformation of enterprise cloud communications, enabling companies around the world to develop, launch, and hyper-scale applications and customer experiences using rich voice and text.
Enterprises everywhere in 2020 are prioritizing voice, video, and text communications in their digital transformations. At the center of this challenge is a critical need for a single worldwide cloud communications platform and network. With the addition of Voxbone’s intuitive user experience, software platform and voice network spanning 60+ countries, Bandwidth will provide global enterprises with a unified answer to the question of how to develop and deliver communications applications and experiences around the world. This creates a tremendous opportunity for Bandwidth, as IDC projects worldwide spending on communications as a service to be $17.7 billion by 20241.
Upon close, Bandwidth will power 11 out of 12 of Gartner’s Magic Quadrant Leaders for UCaaS, CCaaS, and Meeting Solutions enterprises.
Read More: BlackBerry Launches New Unified Partner Program
Other Information:
The consideration to Voxbone shareholders will consist of cash in the amount of $400 million USD (approximately €338 million EUR) with the remainder being paid in Bandwidth Class A common stock (approximately €108 million EUR)2.
The transaction is expected to close on October 31, 2020, and following the closing, Voxbone will operate under the Bandwidth brand.
Morgan Stanley & Co. LLC served as exclusive financial advisor to Bandwidth, with Latham & Watkins serving as legal counsel. Goldman Sachs International served as exclusive financial advisor to Voxbone and Vitruvian, with Freshfields Bruckhaus Deringer serving as legal counsel.
Q3 2020 Results and Guidance:
In conjunction with the announcement of the Voxbone acquisition, Bandwidth expects that it will report third quarter revenue and non-GAAP EPS that are above the guidance ranges provided on July 30. Bandwidth will report its financial results for the three months ended September 30, 2020 on October 29th after market close.
Bandwidth management will discuss additional details of the acquisition and the anticipated financial impact on the business during its third quarter earnings conference call on October 29, 2020.
Read More: APIsec Introduces First, 100% Automated, Certified Pen-Test Report For APIs