Report: VoIP, cloud provider 8x8 considers a possible sale

Two businessmen shaking hands in a hallway
8x8 competes with a host of VoIP-centric providers.

8x8, a VoIP and cloud service provider focused mainly on business customers, is considering selling the company amidst a growing wave of consolidation in the telecom service provider industry segment.

Citing unnamed sources close to the company, Reuters reported that 8x8 has been consulting with Morgan Stanley to gauge the interest of other similar companies and private equity firms.

However, the sources added that there was no certainty the talks would continue or would result in a deal.

Blitz Week

Register for FierceTelecom Blitz Week - June 15-18

As the telecom industry moves forward in the age of new technology, FierceTelecom Blitz week addresses the questions of how platforms, providers, and more will modernize to keep up with these fast-paced changes and their current status of implementing these changes. Join us June 15-18 to dive deep into the world of telecom transformation.

RELATED: 8x8, Vonage take hold of UCaaS market, says research firm

The sources asked not to be identified because the negotiations were confidential. 8x8 and Morgan Stanley did not immediately respond to Reuters’ requests for comment.

Investors responded favorably to the news, as 8x8’s shares rose nearly 14% and ended trading up 10% at $16.15 on Friday. This gives the company a market capitalization of close to $1.5 billion. 

8x8 competes with a host of other VoIP-centric providers like RingCentral, Vonage and ShoreTel for business customers.

While 8x8 mainly focuses on providing business customer-based VoIP and cloud services like unified communications as a service (UCaaS), the service provider has branched out into other areas like call center software services.

ShoreTel and Vonage have been aggressively expanding their reach via acquisitions.

In 2015, ShoreTel acquired Corvisa, a provider of cloud-based communications solutions, for $8.5 million, enhancing its unified communications capabilities.

In order to bolster its UCaaS and cloud capabilities for business customers, Vonage has been no less aggressive. The service provider has purchased four companies, including Nexmo, iCore, SimpleSignal and Telesphere.

These acquisitions have enabled Vonage to stay on an equal footing with 8x8 in the growing UCaaS market segment.

Suggested Articles

On Friday, CenturyLink announced it recently finished up a fiber project that connected 14,000 additional homes, in Boulder, Colo. to gigabit speeds.

SD-WAN could emerge as a prime technology that better enables work-from-home (WFH) and work-from-anywhere (WFA) scenarios for enterprises.

Windstream Enterprise has launched a live, web-based chat feature for its OfficeSuite UC Contact Center Services portfolio.