NEW YORK (TheStreet) -- Vonage (VG) - Get Report stock is gaining 4.65% to $4.73 in afternoon trading on Monday after the cloud communications company completed the acquisition of Nexmo, a communications platform as a service provider.
Holmdel, NJ-based Vonage paid $230 million in cash and stock to acquire Nexmo, which will receive an additional $20 million if certain performance targets are met.
"We are excited to complete the Nexmo acquisition, which positions Vonage as among the largest and fastest growing cloud communications companies in the world," Vonage CEO Alan Masarek said in a statement.
Nexmo will expand Vonage's addressable market and provide the company with application program interfaces for text messaging and voice communications.
"[W]e have acquired a cutting-edge technology company that is redefining how enterprises communicate with their customers via text, social media, voice and chat." Masarek added.
Separately, Vonage has a "hold" rating and a letter grade of C+ at TheStreet Ratings because of the company's revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures, which offsets disappointing return on equity and generally disappointing stock performance.
You can view the full analysis from the report here: VG
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.