8x8 absorbs Contactual

Top M&As 2011Deal size: 6.4 million shares of common stock

Why it's relevant: With its September acquisition of Contactual, 8x8 (Nasdaq: EGHT) not only solidified a business relationship that had seen them reselling Contactual's services to business customers, but also positioned the VoIP provider to attract large enterprises to its growing service portfolio.

"We have a big initiative now to sign larger customers," Bryan Martin, chairman and CEO of 8x8, told destinationCRM. He added that 8x8's strategy was "an organic plan to grow the company through acquisition."

The acquisition also points to 8x8's drive to become a one-stop service provider to business customers. Contactual was its third acquisition in a year; 8x8 grabbed Central Host, a managed services provider, in May 2010, and Zerigo, which specialized in virtual private servers, managed DNS services, and monitoring, in June 2011.

Contactual also adds a sizeable revenue stream to 8x8's portfolio. The call center services provider brought in $8.3 million in revenue in 2010, and 8x8 wants to see that grow. The company made no major product line changes, and all of Contactual's employees were offered jobs at 8x8, an indicator of the provider's confidence that the virtual call center solutions provider's future can only get bigger.

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8x8 absorbs Contactual