RALEIGH, N.C. and LONDON, Oct. 12,
2020 /PRNewswire/ -- 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.
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"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, 8x8 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.
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.
Conference Call:
Bandwidth will host a conference call today at 8:30 a.m. Eastern Time to discuss the
acquisition. To access the call, dial (877) 407-0792 for U.S. or
Canada, or (201) 689-8263 from
outside the U.S. or Canada. There
is a presentation to follow during the call. The presentation, live
webcast of the conference call and archived recording will be
accessible from the Investors section of Bandwidth's website at
https://investors.bandwidth.com/investor-relations. An audio replay
of this conference call will also be available through October 12, 2021, by dialing (844) 512-2921 for
the U.S. or Canada, or (412)
317-6671 from outside the U.S. or Canada, and entering passcode 13711208.
About Bandwidth
Bandwidth (NASDAQ: BAND), is a leading enterprise cloud
communications company. Companies like Google, Microsoft, Cisco,
Zoom, and RingCentral use Bandwidth's APIs to easily embed voice,
messaging and 911 access into software and applications. Bandwidth
is the first and only CPaaS provider offering a robust selection of
communications APIs built around their own nationwide IP voice
network–one of the largest in the nation. More information is
available at www.bandwidth.com.
About Voxbone
Voxbone is an international enterprise cloud communications
leader, with coverage across 93% of the world by GDP. Since
2005, the company's 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. With a global network
and extensive regulatory expertise, Voxbone is a national
operator in markets around the world including the vast majority of
the EU – allowing the company to deliver carrier-grade calls from
the cloud. Customers include Uber, Zoom, Skype, CHR Hansen, 8x8,
Dialpad, NICE inContact and Aircall. Voxbone has approximately 200
employees located in Brussels,
London, Romania, Singapore, and the
United States.
About Vitruvian Partners
Vitruvian Partners is an international growth equity firm
headquartered in London with
further offices in Stockholm,
Munich, Luxembourg, San
Francisco and Shanghai.
Vitruvian focuses on dynamic situations characterized by high
growth and change across asset-light industries. Vitruvian Funds
have backed over 50 companies and have assets under management of
c.€10 billion. In July 2020,
Vitruvian announced the closing of Vitruvian Investment Partnership
IV at a hard cap of €4 billion. Vitruvian is a signatory of the
PRI. Notable investments to date include global market leaders in
their field such as Snow Software, Just Eat, Farfetch, CallCredit,
CRF Health, Marqeta, CFC Insurance, TransferWise, Ebury Skyscanner
and others.
Forward-Looking Statements
This press release includes forward-looking statements. All
statements contained in this press release other than statements of
historical facts, including, without limitation, statements
regarding our ability to consummate the acquisition with Voxbone,
future financial and business performance, attractiveness of our
product offerings and platform and the value proposition of our
products, are forward-looking statements. The words "anticipate,"
"believe," "continue," "estimate," "expect," "intend," "guide,"
"may," "will" and similar expressions and their negatives are
intended to identify forward-looking statements. We have based
these forward-looking statements largely on our current
expectations and projections about future events and financial
trends that we believe may affect our financial condition, results
of operations, business strategy, short-term and long-term business
operations and objectives and financial needs. These
forward-looking statements are subject to a number of risks and
uncertainties, including, without limitation, our ability to
consummate the acquisition with Voxbone, risks related to our rapid
growth and ability to sustain our revenue growth rate, competition
in the markets in which we operate, market growth, our ability to
innovate and manage our growth, our ability to expand effectively
into new markets, our ability to operate in compliance with
applicable laws as well as other risks and uncertainties set forth
in the "Risk Factors" section of our Form 10-K for the year ended
December 31, 2019, filed with the
Securities and Exchange Commission and any subsequent reports that
we file with the Securities and Exchange Commission after
December 31, 2019. Moreover, we
operate in a very competitive and rapidly changing environment. New
risks emerge from time to time. It is not possible for our
management to predict all risks, nor can we assess the impact of
all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
we may make. In light of these risks, uncertainties and
assumptions, we cannot guarantee future results, levels of
activity, performance, achievements or events and circumstances
reflected in the forward-looking statements will occur. We are
under no obligation to update any of these forward-looking
statements after the date of this press release to conform these
statements to actual results or revised expectations, except as
required by law. You should, therefore, not rely on these
forward-looking statements as representing our views as of any date
subsequent to the date of this press release.
1 IDC, Worldwide Communications
Platform-as-a-Service Forecast, 2020-2024, doc # US46287520,
May 2020.
2 All references to EUR estimates in this
release are based on October 9, 2020
exchange rates.
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SOURCE Bandwidth Inc.