Bandwidth Inc., a leading global provider of communications software, will expand its Raleigh headquarters in a move that will bring 1,165 new jobs to North Carolina over the coming
“Though the current backdrop is highly challenging for everyone, the Commerce Department is proud to continue carrying out its mission – and that includes helping companies execute strategic growth plans that involve North Carolina,” Secretary Copeland said. “Today’s announcement by Bandwidth showcases the resiliency and reliability of our state and its renowned economic assets – especially our tech-savvy workforce.”
Bandwidth Inc [Nasdaq: BAND] connects businesses and consumers with a communications platform as a service (“CPaaS”). Its networking technology is utilized by major names such as Google, Microsoft, Cisco and Zoom. The fast-growing company reported $232.6 million in revenue for 2019, up 14% from 2018. Bandwidth has been based in Raleigh since its
“As an essential Nationwide service provider of 911, voice calls and text messages headquartered here in North Carolina, we are proud to have kept up with the unprecedented levels of demand for communications services during this season,” said David Morken, founder & CEO of Bandwidth. “We’re enabling a more connected world at a time when people everywhere need it most. Our mission is critical, and we remain steadfast in continuing to execute on that mission for the people of North Carolina and all Americans. We are proud to be North Carolina raised! Today’s announcement allows us to establish even deeper roots in our vibrant community that will support our growing customers and our flourishing team.”
The North Carolina Department of Commerce led the state’s efforts to secure the expansion by Bandwidth, which also considered other national destinations.
Bandwidth’s North Carolina expansion will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of the grant, the project is estimated to grow the state’s economy by more than $2.7 billion. Using a formula that takes into account the new tax revenues generated by the 1,165 new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $32,279,250 over 12 years. State payments occur only after verification by the departments of Commerce and Revenue that the company has met incremental job creation and investment targets.
Projects supported by JDIG must result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company. The provision ensures all North Carolina communities benefit from the JDIG program. Moreover, Bandwidth’s decision to expand in Wake County, classified under the state’s economic tier system as Tier 3, means the company’s JDIG agreement will result in as much as $10.75 million in new funding for state’s Industrial Development Fund – Utility Account. The Utility Account helps rural and more distressed communities finance infrastructure upgrades necessary in attracting future business.
More information on the state’s economic tier designations is available here.
“Even though this is a challenging time for the residents of Wake County, the announcement from Bandwidth signals confidence and support of our community,” said Greg Ford, Chairman of the Wake County Board of Commissioners. “We look forward to what this announcement means for the long term success of Wake County.”
“Our City and our world is going through an unprecedented challenge,” said Raleigh Mayor Mary-Ann Baldwin. “Despite this, companies like Bandwidth still want to grow and expand here – and call Raleigh home. We appreciate this commitment to grow jobs here, as well as the company's philanthropic spirit and its leadership in the innovation space.”
In addition to the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina, other key partners in the project include the North Carolina General Assembly, the North Carolina Community College System, North Carolina State University, the Capital Area Workforce Development Board, Wake Tech Community College, the Wake County Board of Commissioners, Wake County Economic Development, the City of Raleigh Office of Economic Development and Innovation, and the Greater Raleigh Chamber of Commerce.
Bandwidth (NASDAQ: BAND) is a software company focused on communications for the enterprise. Companies like Google, Microsoft, Cisco, Zoom and RingCentral use Bandwidth's APIs to easily embed voice, messaging and 911 access into software and applications. Bandwidth is the first and only CPaaS provider offering a robust selection of communications APIs built around their own nationwide IP voice network – one of the largest in the nation. More information available at www.bandwidth.com