Genband picked up voice-over-IP specialist Cedar Point Communications for a pittance, according to two industry sources (see Genband To Acquire Cedar Point).
I’m told that the acquisition price was in the ballpark of $10 million to $20 million — far less than the $79 million pumped into the company by investors including Comcast, Motorola, Ascent Venture Partners, Battery Ventures, Charles River Ventures, Focus Ventures, JP Morgan Chase and Star Ventures.
Recall that Cedar Point had insisted that it was in fine shape, claiming it had “consistently” grown revenue in the last several years (see Cedar Point: We’re Not Losing Customers).
But sources again told me Cedar Point had in fact been struggling. One indicator is that it pared back its headcount from 200 three years ago to about 125 by the time the company inked the deal with Genband.
“It seemed like they’d been running on fumes for a while,” said one source.
