Country for PR: Hong Kong
Contributor: PR Newswire Asia (Hong Kong)
Thursday, July 18 2019 - 06:13
Wavecell Acquired by 8x8, Enabling 8x8 to Enter Global Communications Platform-as-a-Service (CPaaS) Market and Add to Industry-Leading Cloud Communications Platform
SINGAPORE, July 19, 2019 /PRNewswire-AsiaNet/ --

- Wavecell extends 8x8's single-technology, cloud platform to include service 
delivery capabilities and APIs for SMS, Chat Apps, Voice and Video - 

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 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, or follow 
8x8 on LinkedIn, Twitter, and Facebook.

8x8® and 8x8 X Series™ are trademarks of 8x8, Inc. 

source: Wavecell Pte. Ltd.