In the famous words of Jake and Elwood Blues (The Blues Brothers):
1) Jake: YES! YES! JESUS H. TAP-DANCING CHRIST... I HAVE SEEN THE LIGHT!
2) Elwood: It's 106 miles to Chicago, we got a full tank of gas, half a pack of cigarettes, it's dark... and we're wearing sunglasses.
3) Jake: Hit it.
4) Elwood: We're on a mission from God.
Like I have said before.... There will be Vonage acquisitions. You ain't seen nothin' yet.
Vonage just made a BRILLIANT ACQUISITION at a very cheap price that, "is expected to be accretive to adjusted Earnings Per Share ("EPS") and on an EBITDA multiple basis in 2015".
VERY NICE MOVE VONAGE MANAGMENT!!
They just punched 8x8 in the teeth.... AND
RNG just IPO'ed for only $97 million and they are saying it's worth $1 BILLION now - AFTER LOSING 13% since their high. Very bullish sign for Vonage.
Eventually, the market will realize HOW INCREDIBLY UNDERVALUED VONAGE IS.
Now, if the extreme right wing flat earth society morons (commonly known as the republican party) don't DEFAULT THE NATION FOR THE FIRST TIME IN HISTORY and cause a WORLD WIDE GREAT DEPRESSION AND STOCK MARKET CRASH, this should work out very, very nicely for Vonage longs.
TOUGH BREAK FOR ALLEGED LONGS - POOR BABIES
Good luck to all good people.
What a deal...only $130M. Vocalocity a private company that didn't want big hassle of an IPO...foresees big value in gaining VG stock in the transaction. Vocalocity currently 21K businesses at 10 lines per business. Vonage will now be going for larger SMB's...cloud-based and scalable . Primary competitor is 8x8 with Vocalocity having more features than 8x8 and more cloud based than 8x8. Growth rate has been greater than 8x8's. Vonage brand will help gain customers "globally". Again, what's an 8x8? VG and Vocalocity both have VoIP patents. Huge synergies...70% lower costs on call terminations than what Vocalocity was paying. Huge deal for Vonage!
I love how you talk up EGHT. In every line and sentence in your thoughts are EGHT. You are an EGHT marketing dream. just remember, when you continue to compare Vonage to it's competitors like EGHT, you are really saying they are not as good and will eventually catch up, maybe. I worked for a company once and the new VP of sales took out every mention of Cisco there was in our marketing collateral. Why you say? because all you are doing is marketing the competitor by mentioning there strengths or weaknesses and their name over what you have. never mention the competition. Always sell on your strengths.
It really does work. And for the record, EGHT is much stronger than most in their markets. So do not try and fool anyone. EGHT is growing and is doing very well. Try not to sound like most of the uninformed people on these boards.
Sentiment: Strong Buy
I'd say it's one heckofa deal based on comps. Wow. They're already doing about half the revenue of RNG and EGHT, valued at 750M and 1B respectively. Sure there are some nuances across the board between Vocalocity and comps but it really looks like they stole it. The smb market landscape just changed a hit. WTG VG management.
Awesome deal. Vonage has finally entered the SMB market. It's a new game now. Add in positive subs to come from BasicTalk and this should start to take flight. Just need to get this fiasco in Washington out of the way so markets can move in tandem with this news.