Vonage Acquires Vocalocity

Acquisition Kicks-Off Vonage Business Solutions Brand

Vonage recently completed the acquisition of Vocalocity, Inc. a “Software as a Service “(SaaS) communications provider that targets small and medium businesses (SMBs). Vonage will now market business voice services to SMBs under the newly-created Vonage Business Solutions brand. Vonage, previously best known for its consumer VoIP services, marks a strategic move by Vonage to enter the SMB market. 

During the first half of 2013, Vocalocity reported revenues of $28 million, with a revenue flow that half 2013 revenues was 39% higher than the same period in the prior year. Vocalocity ended Q2 2013 with 21,000 customers. The service offers features such as call analytics, conference calling, call transfer, virtual receptionist, extension dialing, call forwarding, SimulRing®, mobile capabilities, and online account management. 

"Vocalocity's comprehensive product suite and scalable platform, together with Vonage's brand, scale and mobile technology, position us for rapid growth in the small and medium business communications market," said Marc Lefar, Vonage Chief Executive Officer.

Vonage, well known for disrupting the price curve for consumer voice services, claims that business customers will save at least 30% on existing services that have similar features.  Also like the consumer service, Vonage Business Services are “over the top,” delivered on another carrier’s broadband connection.   

Commenting in a statement on the acquisition, Vocalocity CEO Wain Kellum, now president of Vonage Business Solutions, said, "Everyone at Vocalocity is excited to join Vonage. The company's strong leadership and history of innovation are a perfect fit for our business, and will help us to rapidly expand our customer base."

Vonage is offering free phones to new customers who sign up for business phone service between now and December 15th, subject to restrictions and availability. 

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