Deal enables IP telephony provider to tap into $80 billion addressable market

Vonage has agreed to acquire privately-held cloud contact centre specialist NewVoiceMedia for $350 million (€296.44 million).

The deal strengthens the IP telephony provider’s position in the cloud communications market. Citing statistics from IDC, Vonage said together with NewVoiceMedia the companies will be major players in an addressable market that is forecast to grow by 60% over the next four years to $80 billion. Today, contact centre alone is a $9 billion market, the company added.

"This acquisition accelerates Vonage’s growth strategy and leadership position in cloud communications, strengthens our presence with global mid-market and enterprise clients, and deepens our integrations and key go-to-market relationships with CRM providers, especially," noted Vonage CEO Alan Masarek, in a statement last week.

NewVoiceMedia boasts more than 700 enterprise customers that rely on it for a range of engagement use cases, including inbound customer support and outbound sales. Clients include Adobe, Siemens and Time Inc., among others.

"Vonage and NewVoiceMedia share a powerful vision to serve businesses with cloud communications that connect employees and enable personalised conversations with their customers and prospects. Together, we can help businesses create richer experiences through a state-of-the-art, global, programmable cloud communication platform," said Dennis Fois, CEO of NewVoiceMedia.

Fois will continue to lead NewVoiceMedia. His senior leadership team and all 400 of NewVoiceMedia’s staff will all join Vonage.

The deal is expected to close in the fourth quarter of 2018.