Verizon is officially the proud owner of cloud-based videoconferencing specialist BlueJeans Network, technology that will give the carrier giant a stronger video meeting solution for enterprise customers to better compete against the likes of Zoom Video Communications and Microsoft Teams.
BlueJeans cloud video and events products will complement Verizon's mobile-first business solutions and will be "deeply integrated" into Verizon’s current and future 5G product roadmap, the US-based telco and service provider said on Monday.
Financial terms of the deal to acquire privately-held BlueJeans were not disclosed. A report published in April from The Wall Street Journal said Verizon is paying less than $500 million for the cloud video provider.
Secure and easy-to-use cloud-based video solutions are in high demand as businesses around the world continue to work remotely due to the COVID-19 coronavirus pandemic. Verizon said it April upon first announcing plans to acquire BlueJeans that the deal would help the service provider compete against the competition and attract new customers working from home and specifically, customers in the telehealth space.
The deal brings together BlueJeans' simple and scalable, but encrypted video platform that about 15,000 customers are using today with Verizon's global network, according to both companies.
The two companies said that 390 Blue Jeans employees will now join Verizon and work on the carrier's Advanced Communications portfolio.
BlueJeans CEO Quentin Gallivan and co-founders said in a blog post on the deal that the 11-year old firm will still continue to invest in its partner ecosystem, which BlueJeans said has helped propel the company to where it is today.
"Our channel partners bring a wealth of AV and UC knowledge and we value their knowledge and customer relationships. The good news is, existing BlueJeans partners may continue to resell BlueJeans solutions. We embrace customer choice and recognize end customers may have their preferred providers and integrators and we will continue to work with partners to meet the needs of our joint customers," the executives said.
Verizon stock rose 1.16 percent to $55.34 on the news as Zoom shares declined 1.72 percent to $171.82.