8x8 to Acquire Fuze to Support XCaaS
8×8, an integrated cloud communications platform provider, announced that it has entered into a definitive agreement to acquire Fuze, a provider in cloud-based communications for the enterprise. Under the terms of the agreement, 8×8 will acquire Fuze for approximately $250 million in stock and cash, subject to certain adjustments. The acquisition will accelerate 8×8 XCaaS […]
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8×8, an integrated cloud communications platform provider, announced that it has entered into a definitive agreement to acquire Fuze, a provider in cloud-based communications for the enterprise.
Under the terms of the agreement, 8×8 will acquire Fuze for approximately $250 million in stock and cash, subject to certain adjustments. The acquisition will accelerate 8×8 XCaaS (eXperience Communications as a Service) innovation and expand 8×8’s enterprise customer base and global presence. The transaction is expected to close during 8×8’s fourth fiscal quarter, subject to the satisfaction of regulatory approvals and other customary closing conditions.
“The migration to cloud-based communications and engagement is accelerating as organisations worldwide shift to hybrid work models, creating a multi-billion dollar opportunity,” said Dave Sipes, CEO at 8×8. “Our XCaaS strategy is defining and shaping the future of the cloud communications industry as we drive innovation to help our customers meet their changing business requirements. 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.”
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“Enterprise customers recognise the importance of an integrated UCaaS and CCaaS solution. 8×8’s industry-leading XCaaS solution for an integrated employee and customer experience enables customers to advance their cloud transformation efforts as they move off legacy on-premises systems,” said Brian Day, CEO of Fuze. “Combining resources and expertise with 8×8 is a natural fit, bringing with it needed scale and accelerating the pace of product innovation with differentiated solutions that capitalise on this massive opportunity, all of which will serve to benefit our enterprise customer base.”
The acquisition will deliver strong value to customers, employees, partners, and stakeholders by:
- Accelerating the XCaaS platform advantage with dramatically increased resources for research and development, engineering, and support.
- Expanding the enterprise customer base and global presence, especially in continental Europe.
- Providing significant cross-sell opportunities with 8×8’s omnichannel contact centre and CPaaS capabilities to support enterprise customer engagement efforts.
Transaction Terms and Financial Impact
- Approximately $250 million in aggregate consideration, subject to certain adjustments, composed of approximately $130 million in cash and $120 million in common stock of 8×8.
- Up to $130.2 million will be used to retire Fuze’s debt and pay for the equity owned by non-accredited stockholders of Fuze.
- 8×8 expects to file a resale registration statement for the shares to be issued in connection with the transaction after the closing.
