Vonage boosts strategy to offer completely programmable communications solution for companies and developers.
Vonage, an internet telephone service provider, has acquired TokBox, a PaaS videotelephony company that offers hosted infrastructure and APIs for enterprise-grade WebRTC capabilities. The deal is an all-cash transaction that is valued at $35 million and includes assumed liabilities.
Vonage’s acquisition of TokBox places the telephony company in a major position to lead the programmable video sector to ensure universal adoption of the platform among video API providers. The San Francisco-based TokBox is one of the industry leaders in WebRTC programmable video and enables developers and enterprises to integrate live video into mobile apps, websites, and IoT devices with limited knowledge of coding.
Additionally, the acquisition will help Vonage to boost leverage of its API Platform by integrating video into its current SMS, IP, and voice messaging services. Vonage hopes the long-term outcome of the acquisition will give the company a firm foundation to become a general provider of B2B cloud communications services.
Vonage CEO Alan Masarek said of the acquisition, “We are incredibly excited to announce the acquisition of TokBox, the global leader in programmable video APIs. With TokBox, our API portfolio expands beyond voice, SMS and IP messaging to include global leadership in programmable video. TokBox significantly expands our total addressable market, and it is a major step towards global leadership in cloud communications.”
TokBox CEO Scott Lomond, wrote in a blog post on the company’s website, “We’re incredibly excited and believe this is a great development for our video platform and the customers who use it. TokBox and Vonage share a vision of making businesses of all sizes and across all verticals more successful through the creation of engaging communications applications and experiences.”
The B2B sector now consists of over 50% of all industry revenue. IDC reports that by 2022, the U.S. programmable video market will be an opportunity that is worth $7.4 billion. Such growth is being driven by three primary reasons: 1) adoption of WebRTC; 2) reduction in cost and complexity; and 3) near ubiquity of video-capable devices.
Mark Winther, VP of telecom consulting for IDC said, “TokBox extends Vonage’s ability to gain share in the fast growing CPaaS market with a set of interactive video APIs and a customer base that proves the value of programmable video communications.”
With the addition of TokBox to the Vonage platform, developers will begin to ensure flexible and scalable programmable video solution that help to create both engaging and embedded communications experiences.