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Vonage Raises $250 Mil in Convertible DebtTMCnet VoIP Minute Watch Columnist
It has been a busy 2005 for Vonage Holdings Corporation. The company has announced everything from WiFi phones to partnerships for E911 access. The VoIP-based calling service provider has even been rumored to be filing for an initial public offering (IPO).
This Monday, New Jersey-based Vonage announced that it raised $250 million in convertible debt funding with a group of investors led by affiliates of Bain Capital, with strong participation from financial institutions and existing investors including New Enterprise Associates (NEA) and Meritech Capital Partners. The latest round of financing brings total investment in the company to $658 million. "This latest round of funding validates Vonage's leadership in the broadband telephony market," said Jeffrey A. Citron, chairman and CEO of Vonage Holdings Corporation. In addition to our existing investors, Vonage has raised capital from sixteen new investors, which proves the financial community is confident Vonage is executing on our strategy to redefine the way people communicate, having already shifted the telecommunications landscape to an IP-based world."
Citigroup, UBS and Deutsche Bank served as financial advisors to Vonage throughout the transaction; Shearman & Sterling LLP served as legal advisor. Vonage senior management also participated in the round.
"We are looking forward to helping Vonage continue extending its lead as the number one player in the VoIP industry, and helping expand its services both domestically and abroad," said Michael Krupka, managing director of Bain Capital Ventures.
The VoIP-based calling service provider plans to utilize the latest round of financing as general working capital to build-out its network across the U.S. including deployment of E911.
Vonage made news last week when it announced it joined broadband phone company UTStarcom Inc. to launch the F1000, a portable WiFi handset manufactured by UTStarcom and configured with Vonage's VoIP phone service, right in time for the holidays. The device, which will offer mobility across 802.11b networks and is currently available online, retails for $129.99 with a $50 instant rebate for a total of $79.99.
Vonage Holdings Corp.
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Johanne Torres is contributing editor for TMCnet and Internet Telephony magazine. To see more articles by Johanne Torres, please visit Johanne Torres' columnist page.
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