Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.
Three patterns run through 8X8's acquisitions — what it looks for, how it pays, and how it folds in what it buys.
8 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.
Fuze was a provider of cloud-based unified communications for the enterprise, with global operations spanning unified communications and contact center. 8x8 folded Fuze into its XCaaS (eXperience Communications as a Service) platform to add scale, a larger enterprise customer base, and a stronger presence in continental Europe. The disclosed consideration of roughly $250 million was split about $130 million cash and $120 million stock, with up to $130.2 million earmarked to retire Fuze debt and pay out non-accredited holders. approximately $250 million (approximately $130 million cash and $120 million in 8x8 common stock).
The migration to cloud-based communications and engagement is accelerating as organizations worldwide shift to hybrid work models, creating a multi-billion dollar opportunity. 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.Dave Sipes — CEO, 8x8
Combining resources and expertise with 8x8 is a natural fit, bringing with it needed scale and accelerating the pace of product innovation with differentiated solutions that capitalize on this massive opportunity.Brian Day — CEO, Fuze
Wavecell was a Singapore-based communications-platform-as-a-service (CPaaS) provider offering programmable messaging (SMS), voice, video and chat APIs, with a strong presence across APAC and EMEA. 8x8 acquired all outstanding equity of Wavecell under a Share Purchase Agreement for total consideration of about $125 million in cash and stock, issuing 2,628,761 shares (including time- and performance-vesting shares for employee retention); Wavecell became a wholly owned subsidiary. approximately $125 million (cash and stock).
Contactual was a provider of cloud-based call center and customer-interaction-management software. 8x8 acquired 100% of Contactual's stock via merger, issuing about 6.5 million shares (roughly 1.0 million held in escrow for indemnification). The technology became the foundation of the 8x8 Virtual Contact Center, 8x8's hosted multichannel contact-center product. approximately $31.8 million ($0.9 million cash, $30.6 million in stock and $0.3 million in options; 6,484,900 shares issued).
Voicenet Solutions was a UK-based provider of cloud communications and collaboration services. 8x8 purchased all of Voicenet's outstanding shares for total consideration of about $19.3 million (with $3.0 million in escrow released to sellers over two anniversaries), holding Voicenet through a newly formed UK subsidiary. The deal added roughly $20.8 million of goodwill and customer-relationship intangibles (about a 7-year life). approximately $19.3 million (including $3.0 million placed in escrow).
DXI (DXI Limited together with API Telecom, Easycallnow and RAS Telecom) provided SaaS for call-center solution workflows in the UK. 8x8, through its UK subsidiary, bought the entire share capital for approximately $22.5 million, with a portion held in escrow. 8x8 later re-evaluated the product strategy, discontinuing the ContactNow stand-alone product and recording a $9.5 million impairment of DXI goodwill and other assets in fiscal 2018. approximately $22.5 million.
LeChat, Inc. operated Sameroom, a messaging-interoperability service that connected different team-chat and messaging platforms. 8x8 acquired all preferred and common shares under an Agreement and Plan of Merger for about $3.1 million total consideration ($2.4 million to preferred holders, $0.2 million to common holders and $0.5 million into escrow), recording developed-technology intangibles and goodwill. approximately $3.1 million ($3.115 million total consideration).
Under an asset purchase agreement, 8x8 bought technology and other assets from MarianaIQ to strengthen the artificial-intelligence and machine-learning capabilities of its X Series product suite. The acquired developed technology was recorded as an identifiable intangible asset (about a two-year life); the deal was not material to 8x8's revenue or net loss and terms were not separately disclosed.
8x8 acquired assets relating to the Jitsi open-source video-communications technology from Atlassian under an asset purchase agreement. Jitsi extended 8x8's platform with scalable, standards-based (WebRTC) video routing and interoperability. 8x8 continued to support the open-source Jitsi project and built 8x8 Video Meetings on it — a free video product that surpassed 20 million monthly active users globally by May 2020. Terms were not separately disclosed.