8x8 Completes $250 Million Fuze Acquisition, Increasing Global Reach

8×8 has completed its acquisition of rival Fuze for approximately $250 million in stock and cash.

8×8 said the deal will accelerate its XCaaS (eXperience Communications as a Service) innovation, and expand its enterprise customer base and global presence.

Raul Castanon is senior research analyst with 451 Research, part of S&P Global Market Intelligence. He said increasing its global market footprint is likely the key driver for 8X8 acquiring Fuze.

Cloud communications has become intensely competitive, he said. Vendors such as Cisco, Dialpad and RingCentral are maintaining a “relentless pace” when it comes to product innovation.

451 Research’s Raul Castanon

“8×8 holds its own when it comes to technology and innovation,” Castanon said. “And even though it has reported double-digit growth in the past five years, it was facing mounting pressure from competitors such as RingCentral that are aggressively expanding their global presence.”

New Opportunity For Fuze Partners

Meghan Keough is 8×8’s senior vice president of product and marketing. She said Fuze partners will have an opportunity to sell a broader portfolio. That includes 8×8’s XCaaS integrated cloud communications and contact center solution.

8×8’s Meghan Keough

“In addition, as we continue to support the Fuze platform, Fuze partners will also have significant cross-sell opportunities with 8×8’s omnichannel contact center to enhance employee and customer experiences, allowing channel partners to compete more effectively in today’s market,” she said.

8×8 will offer customer choice, protecting customer investments in the Fuze platform with continued support, Keough said. It will also provide a no-cost upgrade path to 8×8’s XCaaS platform.

“We are engaging with all Fuze partners to support their existing sales, as well as provide the opportunity for them to expand their offerings with the addition of the 8×8 portfolio, including an integrated 8×8 contact center solution,” she said. “8×8 looks forward to bringing more value to Fuze partners and customers.”

8×8 Acquiring Fuze Key Milestone for 8×8 CEO

The acquisition is a key milestone for 8×8 CEO David Sipes, who took the helm a year ago, Castanon said. Buying Fuze is a “signal that 8×8 plans to remain a key UCaaS/CaaS/CPaaS global player.”

“We are excited to welcome Fuze employees, customers and partners to 8×8,” Sipes said. “We are committed to supporting the Fuze platform, while offering the best of both platforms to all of our customers. With this acquisition, we can further extend our XCaaS offering to deliver a differentiated experience for enterprise organizations, which is instrumental as we drive to become a $1 billion revenue SaaS business.”