Bandwidth Buying Voxbone, Becoming Global CPaaS Player

Bandwidth is acquiring Voxbone, an international enterprise cloud communications provider, to become a global CPaaS player. The acquisition is for $527 million.

The deal should close on Oct. 31. Bandwidth is among providers on the CP List of 20 CPaaS Providers You Should Know.

Raul Castanon is senior research analyst with 451 Research, part of S&P Global Market Intelligence.

451 Research’s Raul Castanon

“It’s an interesting coincidence that Twilio’s largest acquisition so far was announced on the same day as Bandwidth’s acquisition of Voxbone and CM’s acquisition of RobinHQ,” he said. “This highlights how the digitalization of the customer experience is accelerating as a result of the COVID-19 outbreak.”

Big Market Opportunity for Bandwidth

The deal significantly expands the market opportunity for Bandwidth, Castanon said.

“The company has been a strong contender in the CPaaS space, but largely as a regional U.S.-centered vendor,” he said. “The acquisition of Voxbone repositions it as a global CPaaS provider. Voxbone and Bandwidth have followed a similar approach as providers of carrier-grade enterprise communications. However, the two vendors complement each other, based on their respective dominance in the European (Voxbone) and U.S. (Bandwidth) markets.”

Vitruvian Partners is Voxbone’s majority owner. It’s a growth-and technology-focused investment firm based in London. Voxbone is a Europe-based communications platform and IP voice network. Since 2005, Voxbone’s mission has been to simplify global communications for businesses.

Bandwidth’s David Morken

“We are bringing together leading domestic and international enterprise cloud communications platforms to supercharge global cloud communications for our customers,” David Morken, Bandwidth’s co-founder, chairman and CEO. “Bandwidth’s deep U.S. presence and Voxbone’s worldwide platform across 60-plus countries will serve enterprises in countries representing 93% of global GDP.”

The acquisition accelerates Bandwidth’s international strategy by several years, he said.

“Voxbone‘s platform is trusted by approximately 900 enterprises, including brands like Uber, Zoom, 8×8 and Skype,” Morken said. “We’re thrilled to welcome this pioneering team to Bandwidth and congratulate them on their tremendous growth.”

Bandwidth will help global enterprises develop and deliver communications applications and experiences around the world. This creates a big opportunity for Bandwidth. IDC projects worldwide spending on communications as-a-service to be $17.7 billion by 2024.