8×8 To Buy UCaaS Competitor Fuze For $250M

UCaaS provider 8×8 Wednesday said it will acquire fellow cloud communications specialist Fuze for approximately $250 million in stock and cash.

The deal will help 8×8 build on its flagship XCaaS platform, which the company introduced in May, that includes UCaaS, Contact Center as a Service (CCaaS) and Communications Platform as a Service (CPaaS). The acquisition will also increase 8×8’s enterprise customer base and global reach, especially in continental Europe, the two companies said.

Fuze, based in Boston, offers a global cloud platform for voice and video meetings, content sharing and contact center. Fuze has a global partner program and locations in New York, San Francisco, Seattle, Ottawa, London, Amsterdam, Aveiro, Portugal, Paris, Munich, Zurich, Copenhagen and Sydney.

[Related: 8×8 Channel Chief: ‘The Jig Is Up’ On UCaaS Competitors Relying On Tech Partnerships]

“The migration to cloud-based communications and engagement is accelerating as organizations worldwide shift to hybrid work models, creating a multibillion-dollar opportunity,” said 8×8 CEO Dave Sipes in a statement on the deal. “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.”

8×8 is committed to supporting Fuze’s customers on the Fuze platform and keeping partners’ customer relationships protected, Bobby Hall, 8×8’s channel chief, told CRN in an email.https://048e51b8f0d3a41ba6c52a7534ca36da.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

“8×8’s acquisition of Fuze will enable us to accelerate 8×8 XCaaS innovation and strengthen our offerings to partners and customers,” he said. “Fuze’s partners will have the opportunity to expand relationships and revenue opportunities by now having the ability to offer 8×8 Contact Center integrated with Fuze’s UC solution, while also allowing for a seamless upgrade to an integrated UCaaS and CCaaS solution with 8×8 XCaaS.”

Campbell, Calif.-based 8×8 last year saw its channel bookings grow 64 percent year over year. The 8×8 channel also delivered its highest new bookings quarter on record across all regions globally at the end of 2020, propelled in part by the COVID-19 pandemic and enterprises clamoring for UCaaS and CCaaS solutions.

8×8’s cloud-native XCaaS offering is a “one platform approach” that erases boundaries between different communications tools and contact center products, the company said. XCaaS is built on a secure and compliant cloud platform that lets the company offer the industry’s only UCaaS and CCaaS platformwide 99.99 percent uptime SLA, according to the provider.

The deal will help the company put more resources into research and development, engineering and support for its XCaaS platform.

The deal between the two companies, which is subject to certain adjustments, is expected to close during 8×8’s fourth fiscal quarter, which ends in April 2022.RELATED TOPICS:

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