Vonage Buys Simple Signal

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| Peter Radizeski of RAD-INFO, Inc. talking telecom, Cloud, VoIP, CLEC, and The Channel.

Vonage Buys Simple Signal

Big news yesterday at the CP Expo was that Simple Signal got acquired by Vonage. The Big Cheese seemed thrilled. "The deal to buy privately held Simple Signal (and its 1,600 customers, not counting white-label partners) is for $25.25M -- about $20M in cash and 1.1M in Vonage common stock," per Seeking Alpha. That was about 1.5x revenue.

This is Vonage's third acquisition in the business VoIP space starting with Vocaocity in 2013 and Telesphere last year. It will be interesting to see how this shakes out for Vonage. Will they continue to run three platforms (Broadsoft from SS and TS; Vonage resi proprietary and Vocalocity's platform).

One bonus for Vonage in this acquisition is that Simple Signal had a mature channel program. This will only strengthen the Vonage Business channel that Telesphere added.

"SimpleSignal has a strong base of 1,600 customers and additional white label partners. SimpleSignal provides solutions with carrier-grade reliability across their own MPLS network and bring your own broadband (BYOB) delivery options." [pr]

The question on everyone's mind: Who is next? The Cloud Comm guys are slowly being picked up.

Another Q: What happens if all the Broadsoft players consolidate to just 4 places? What if BSFT only has 4 customers in the US - VZ, Comcast, Vonage, and another consolidator?



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