SINGAPORE, July 18, 2019 /PRNewswire/ -- 8x8, Inc. (NYSE: EGHT), a leading cloud provider of voice, video, chat and contact center solutions for over one million users worldwide, today announced the acquisition of privately-held Wavecell Pte. Ltd., a Singapore-based global Communications Platform-as-a-Service (CPaaS) provider, for approximately USD $125 million in cash and stock. The acquisition provides 8x8 with an established technology platform and high-growth revenue business to pursue CPaaS globally and represents a natural expansion of 8x8's cloud business from Unified Communications-as-a-Service (UCaaS), Contact Center-as-a-Service (CCaaS), and Video into the CPaaS market.
Wavecell is expected to further accelerate 8x8's growth, expand its international presence, and deepen the company's technology capabilities in cloud communications. The acquisition expands 8x8's presence into the rapidly growing Southeast Asian market, including Singapore, Indonesia, Philippines, Thailand, and Hong Kong, with a talented employee base and more than 500 enterprise customers, including Paidy, Lalamove and Tokopedia. Wavecell also brings an R&D center in Asia which allows 8x8 to further accelerate growth in product innovation and delivery.
"8x8 is now the only cloud provider that owns the full, global-scale, cloud-native, technology stack offering voice, video, messaging, and contact center delivered both as pre-packaged applications and as enterprise-class APIs. We're excited to welcome the Wavecell employees to the 8x8 family. We now have a significant market presence in Asia and expect to continue to expand in the region and globally in order to meet evolving customer requirements," said Vik Verma, CEO of 8x8, Inc.
"With the acquisition of Wavecell, we can now offer customers enterprise-class APIs, bringing a CPaaS solution to our global communications platform," said Dejan Deklich, Chief Product Officer of 8x8, Inc.
"We are delighted to become part of 8x8, one of the world's leading cloud communications platforms. Now is the right time to leverage the global expansion of UCaaS, CCaaS and CPaaS services to better serve our customers' growing demand for communication services and to continually drive greater innovation," said Olivier Gerhardt, CEO and Co-Founder of Wavecell.
Transaction Terms and Financial Impact
Under the terms of the agreement, 8x8 acquired Wavecell for total consideration of approximately USD $125 million, which represents a multiple of less than 4x anticipated Wavecell calendar 2019 revenue. This is comprised of approximately USD $69 million in cash and approximately USD $56 million in 8x8 common stock, of which approximately USD $12 million of common stock is subject to certain vesting restrictions over a three-year period. The purchase price is subject to customary adjustments as well as holdback and escrow arrangements per the terms of the agreement.
Going forward, the Company expects the Wavecell business to be accretive to 8x8's revenue growth rate and have a minimal impact on full-year fiscal 2020 non-GAAP pre-tax loss.
Forward Looking Statements Disclaimer
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, expansion of 8x8's presence internationally, including in Southeast Asia, the expected future revenue growth of Wavecell and the acceleration of 8x8's revenue growth, expansion of 8x8's cloud business into the CPaaS market, future growth in product innovation and delivery, future product integrations and enhancements between Wavecell and 8x8's products, 8x8's previously issued guidance, as well as 8x8's expectation that the acquisition of Wavecell will be accretive to 8x8's revenue growth rate and have a minimal impact on full-year fiscal 2020 non-GAAP pre-tax loss. These forward-looking statements are based on 8x8's current expectations, estimates and projections about its business and industry, management's beliefs and certain assumptions made by 8x8, all of which are subject to change. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "future", "believe," "expect," "may," "will," "intend," "estimate," "continue," or similar expressions or the negative of those terms or expressions. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include customer acceptance and demand for our cloud communication and collaboration services, the quality and reliability of our services, customer cancellations and rate of churn, our ability to scale our business, risks relating to our strategies and objectives for future operations, including the execution of integration plans and realization of the expected benefits of our acquisitions, timing and extent of improvements in operating results from increased spending in marketing, sales, and research and development, as well as the other potential factors described under "Risk Factors" included in 8x8's Annual Report on Form 10-K for the year ended March 31, 2019 and other documents of 8x8, Inc. on file with the Securities and Exchange Commission (available at www.sec.gov). 8x8 cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. 8x8 assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.
About 8x8, Inc.
8x8, Inc. (NYSE: EGHT) cloud solutions help businesses transform their customer and employee experience. With one system of engagement for voice, video, chat and contact center and one system of intelligence on one technology platform, businesses can now communicate faster and smarter to exceed the speed of customer expectations. For additional information, visit www.8x8.com, or follow 8x8 on LinkedIn, Twitter, and Facebook.
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