UCaaS provider 8x8 said on Wednesday that it will acquire fellow cloud communications specialist Fuze for approximately US$250 million (AU$350 million) in stock and cash.
The deal will help 8x8 build on its flagship XCaaS platform, which the company introduced in May, that includes UCaaS, contact-centre-as-a-service (CCaaS) and communications-platform-as-a-service (CPaaS). The acquisition will also increase 8x8’s enterprise customer base and global reach, especially in continental Europe, the two companies said.
Fuze, based in Boston, USA, offers a global cloud platform for voice and video meetings, content sharing and contact centre. Fuze has a global partner program and locations in New York, San Francisco, Seattle, Ottawa, London, Amsterdam, Aveiro, Portugal, Paris, Munich, Zurich, Copenhagen and Sydney.
“The migration to cloud-based communications and engagement is accelerating as organisations worldwide shift to hybrid work models, creating a multibillion-dollar opportunity,” said 8x8 CEO Dave Sipes in a statement on the deal. “The acquisition of Fuze expands our operational scale and extends our global presence as we meet enterprise demand for our XCaaS integrated UCaaS and CCaaS solution.”
US-based 8x8 saw its channel bookings grow 64 percent year over year last year. The 8x8 channel also delivered its highest new bookings quarter on record across all regions globally at the end of 2020, propelled in part by the COVID-19 pandemic and enterprises clamouring for UCaaS and CCaaS solutions.
8x8’s cloud-native XCaaS offering is a “one platform approach” that erases boundaries between different communications tools and contact centre products, the company said. XCaaS is built on a secure and compliant cloud platform that lets the company offer the industry’s only UCaaS and CCaaS platform-wide 99.99 percent uptime SLA, according to the provider.
The deal will help the company put more resources into research and development, engineering and support for its XCaaS platform.
The deal between the two companies, which is subject to certain adjustments, is expected to close during 8x8’s fourth fiscal quarter, which ends in April 2022.