Vonage Holdings Corp
, a leading provider of broadband phone service, announced that it has raised $250 million in convertible debt funding with a group of investors led by affiliates of Bain Capital, with strong participation from leading 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."
"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.
Vonage's latest round of financing will be used as general working capital to build-out its network across the United States including deployment of Enhanced 911. Vonage senior management also participated in the round.
Citigroup, UBS and Deutsche Bank served as financial advisors to Vonage throughout the transaction; Shearman & Sterling LLP served as legal advisor.