Vonage to draw down on credit facility to help fund Nexmo acquisition

By Wendy Van Sickle

Columbus, Ohio, May 5 – Vonage Holdings Corp. will draw down on its 2015 revolving credit facility, including exercising a portion of its accordion feature, to fund part of its acquisition of Nexmo, Inc., according to a company news release.

Of the $230 million consideration, $195 million will be paid at close, consisting of a minimum of $159 million of cash and a maximum of $36 million in stock. Vonage may choose to substitute $23 million of additional cash for stock.

Vonage will also use cash on hand to pay for the acquisition.

The company said the transaction will result in pro forma net debt to adjusted EBITDA of about 2.25 times.

Vonage provides communication services through broadband devices and is based in Holmdel, N.J. Nexmo is a San-Francisco based provider of communication application program interfaces for text messaging and voice communications.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.