The US-based VoIP provider 8x8 has agreed to acquire its smaller rival Fuze for USD 250 million in cash and shares. The acquisition will grow its enterprise customer base and global footprint, giving 8x8 more scale to compete in the Communications-as-a-Service market.
Fuze has global operations delivering unified communications and contact centre services. 8x8 said the acquisition will help it grow in UCaaS, CCaaS and CPaaS, offering integration and cross-selling opportunities across enterprise communications and customer service platforms. The company expects also to benefit from "dramatically increased resources" for research and development, engineering, and support, as well as a greater presence in continental Europe.
Pending regulatory approvals, 8x8 expects to complete the takeover in its fiscal fourth quarter to March 2022 and remain profitable on an adjusted basis after the deal. The purchase price includes USD 130 million cash and the remainder in 8x8 shares. Up to USD 130.2 million will be used to retire Fuze’s debt and pay for the equity owned by non-accredited stockholders of Fuze.
