The recent announcement of Vonage’s acquisition of cloud contact center-as-a-service (CCCaaS) provider NewVoiceMedia for an equity price of $350M in cash was a carefully considered decision designed to leverage the strengths of both companies in the ever-evolving contact center space. “We thoroughly explored a number of companies as we looked for the right fit in cloud contact center before announcing our intent. We found the strategic benefits to be compelling,” noted Omar Javaid, Vonage Chief Product Officer. “The combination of Vonage’s robust UCaaS and CPaaS solutions with NewVoiceMedia’s pure-play cloud contact center offering provides a seamless user experience, with end-to-end communications to enable increased employee productivity, mobility and ease-of-use, as well as enhanced customer engagement and more productive conversations. NewVoiceMedia will provide us with global scale and round out our robust product offering in the high-growth cloud contact center market. This is a large market that is adjacent to UCaaS and is undergoing the same on-prem-to-cloud migration taking place in UCaaS.”
NewVoiceMedia delivers a cloud contact center solution that is distinguished by its specifically CRM-focused, go-to-market approach. As businesses adopt CRM tools to improve customer engagement and to drive digital transformation, these solutions offer what Vonage believes to be a superior, integrated experience with leading CRMs: for example, NewVoiceMedia offers a tight integration with Salesforce. This is particularly important for better, real-time, omnichannel interactions across chat, voice and SMS, as well as more robust analytics and data capture.
“By orienting NewVoiceMedia’s technology stack to a programmable, microservices architecture, we will be able to increase the number of programmable solutions offered on Nexmo, the Vonage API platform,” said Javaid. “There is a natural linkage between our programmable communications platform and cloud contact center in which components-such as queuing, IVR and speech analytics among others–can be accessed via APIs and embedded into a company’s existing solutions to improve functionality, making every customer communication count.”
“Once the deal has closed (which is expected in Q4), we will focus on fully integrating the solutions,” he said. “Since they complement each other so well, we plan on accelerating our strategy to create OneVonage, our combined, microservices-based, cloud communications platform. With OneVonage, we will provide solutions, all fully programmable, including packaged applications such as PBX, Contact Center, Collaboration and Team messaging, as well as programmable communication APIs.”
Javaid believes that by fully integrating NewVoiceMedia’s cloud contact center solutions into Vonage’s UCaaS offering, the company will be responding to the strong customer demand it has seen among mid-market and enterprise customers for such integrated solutions. “Up until now, we have addressed this demand by integrating third-party contact center solutions,” he said. “By owning NewVoiceMedia, we can more deeply integrate our products and deliver a superior solution versus competitive offerings.”
While the solutions will be merged, the companies will continue to operate independently. According to Javaid, NewVoiceMedia, which has more than 700 customers and more than 400 employees, will continue to operate on a standalone basis for the foreseeable future.
Vonage expects to realize annual run rate synergies of about $10M by the end of next year and hopes to see these results go “meaningfully higher” by the end of 2020.