Vonage buys privately held Telesphere Networks for $114 million

Associated Press

Internet phone company Vonage Holdings Corp. said it plans to buy privately held Telesphere Networks for $114 million.

Telesphere, based in Phoenix, provides video conferencing and cloud-computing for small businesses. It's expected to have revenue of about $40 million this year, Vonage said.

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Telesphere shareholders will get about $91 million in cash and 6.9 million Vonage shares. The deal is expected to close by the end of the year.

Shares of Vonage, based in Holmdel, New Jersey, fell 15 cents, or 4.4 percent, to $3.29 in afternoon trading.