Zoom invests in Unity Business

Zoom Technologies Inc., a Boston-based producer of modems and other communications products, said today it has invested $1.06 million in Unity Business Networks LLC, a hosted business VoIP service provider.

For its investment, Zoom said it received preferred shares for a 15 percent interest in Unity, a privately owned communications company that provides local, long-distance, and Internet services to single and multi-site businesses in Colorado, Minnesota, and Oregon.

The investment also entitles Zoom to specified veto rights and an option to buy all of Unity in early 2009 at a predetermined multiple based on Unity's performance in 2008, Zoom said.

"Hosted VoIP for business is a high-growth area that is a good fit with Zoom's existing business and technology expertise," Zoom chief executive Frank Manning said in a statement.
(By Chris Reidy, Globe staff)