Raindance Communications Inc., a Louisville designer of Web-based video-conferencing service, said Monday that it would be acquired by West Corp. of Omaha for $2.70 a share in cash, or about $110 million.
The deal is subject to approval of Raindance shareholders and is expected to close in the second quarter of 2006.
It’s the second deal for West in Colorado in a week. The company agreed Jan. 30 to purchase Longmont-based Intrado Inc. for about $465 million.
Raindance, founded in 1997, has 251 employees. The company provides Web-conferencing services based on proprietary software. Companies use Raindance’s video-conferencing services over high-speed networks to hold meetings, close deals and reduce travel expenses.
West, founded in 1986, provides a variety of business services and owns InterCall, a global provider of Web, video and audio conferencing services. The addition of Raindance will allow West to expand its technical capabilities in conferencing. West has 28,000 employees worldwide.
“Raindance has two flagship products for smaller meetings and larger meetings. This will add scale and the functionality (InterCall) provides,” said West spokesman David Pleiss.
There are no current plans to relocate Raindance to Omaha, Pleiss said. He said it is also unclear what will happen to the Raindance brand name and whether employees’ jobs will be affected.
Staff writer Kimberly S. Johnson can be reached at 303-820-1088 or kjohnson@denverpost.com.
