NEW YORK – VOIP provider Vonage Holdings hopes to raise US$250 million in an initial public offering, The Wall Street Journal reported today.
The $250 million offering comes after the New Jersey company which now offers service across Canada, "held months of discussions with prospective suitors, none of which resulted in a sale," said the newspaper report. "Vonage, which is not profitable, had been seeking a sale price of US$2 billion or more, according to people familiar with the discussions. The company had also mulled an IPO as large as $600 million, the people said."
The company, which has 1.4 million customers, named Michael Snyder, the 53-year-old former president of the ADT unit of Tyco International Ltd., to take over the chief executive post from company founder Jeffrey Citron on Feb. 27. Citron, 35, will remain chairman, said the newspaper.
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