Vonage Holdings Corp. on Wednesday filed for an initial public offering of $250 million, and appointed Mike Snyder, former president of security systems firm ADT, as chief executive, replacing founder Jeffrey A. Citron.
In its prospectus to the Securities and Exchange Commisssion, the Internet telephony provider did not list the number of shares being offered or an estimated IPO price per share. A date for the sale also wasn't disclosed. The underwriters of the IPO, however, were listed as Citigroup, Deutsche Bank Securities and UBS Investment Bank.
Vonage listed the "proposed maximum aggregate offering price" was $250 million, but that number is likely to change leading up to the IPO.
In giving up his post as chief executive, Citron becomes chairman and chief strategist of the Holmdel, N.J., company, focusing on taking the company into new product areas, technologies and growth opportunities, the company said. Snyder, who was president of ADT since 1997, will take over the day-to-day operations. ADT is a unit of Tyco International Ltd.
Vonage said the IPO was necessary for the "expansion of our business, including funding marketing expenses and operating losses." In addition, the public funds could be used for acquisitions.