Vonage Holdings, a provider of communications services connecting people through cloud-connected devices worldwide, has entered into a definitive agreement to acquire privately-held Vocalocity, a software-as-a-service (SaaS) provider of cloud-based communication services to small and medium businesses.

Vonage will acquire Vocalocity for $130 million, including $105 million in cash and $25 million in Vonage common stock. During the first half of 2013, Vocalocity had revenue of $28 million and growing, implying an annual run rate of greater than $56 million. First half 2013 revenues were 39 percent higher than the same period in the prior year.

Upon closing, Vocalocity CEO Wain Kellum will join Vonage as president, business services, and become a member of the company's senior leadership team.