SAN JOSE, Calif.--(BUSINESS WIRE)--8x8, Inc. (NASDAQ:EGHT), a leading provider of cloud-based unified communications and contact center solutions, today announced it has completed the acquisition of certain assets of privately held Quality Software Corporation (QSC) and two affiliated companies. The acquisition is expected to be neutral to 8x8's net income for the fiscal year ending March 31, 2016, after excluding one-time costs associated with the acquisition and amortization expenses.
The purchase price for QSC was $3 million in cash, of which $2.2 million was paid at closing. 8x8 funded the aggregate cash purchase price from its cash and investments.
With the acquisition of the QSC business, 8x8 expands its pure cloud contact center portfolio to include innovative quality management capabilities such as call recording, screen capture, live monitoring, agent evaluations, speech transcription, reporting and detailed analytics. QSC’s Chief Executive Officer Ryan Morrissey joins 8x8 as Senior Director of Product Strategy while the company’s engineering team remains in Romania to supplement and build upon existing R&D resources in the United States and United Kingdom.
"We are very pleased to welcome Ryan and his colleagues to the 8x8 family,” said 8x8 CEO Vik Verma. “This is an exciting time in 8x8’s history as we continue to build upon our innovative technology platform and Global Reach® initiative while further strengthening our capabilities for the mid-market and enterprise. Our new engineering resources in Romania will be instrumental in helping 8x8 achieve its R&D goals and maintain its leadership position in the cloud unified communications and contact center markets.”
8x8 also reported, in accordance with NASDAQ Listing Rule 5635(c)(4), that employment inducement awards were granted to 83 new employees in connection with the recent acquisitions of DXI Ltd. and the QSC business. The employees received restrictive stock units for 203,065 shares of the company's common stock which will vest in equal annual installments over four years, subject to the employee’s continued employment and other conditions.
About 8x8, Inc.
8x8, Inc. (NASDAQ:EGHT) is the trusted provider of secure and reliable enterprise cloud communications solutions to more than 40,000 businesses operating in over 40 countries across six continents. 8x8's out-of-the-box cloud solutions replace traditional on-premises PBX hardware and software-based systems with a flexible and scalable Software as a Service (SaaS) alternative, encompassing cloud business phone service, contact center solutions, and conferencing. For additional information, visit www.8x8.com, or www.8x8.com/UK or connect with 8x8 on Google+, Facebook, LinkedIn and Twitter.
Forward Looking Statements
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934. These statements include, without limitation, statements regarding the expected impact of the described acquisition upon net income, as well as other information about future events based on current expectations, potential product development efforts, near and long-term objectives, potential new business, strategies, organization changes, changing markets, future business performance and outlook. Such statements are predictions only, and actual events or results could differ materially from those made in any forward-looking statements due to a number of risks and uncertainties. Actual results and trends may differ materially from historical results or those projected in any such forward-looking statements depending on a variety of factors. These factors include, but are not limited to, market acceptance of new or existing services and features, success of our efforts to target mid-market and larger distributed enterprises, changes in the competitive dynamics of the markets in which we compete, customer cancellations and rate of churn, impact of current economic climate and adverse credit markets on our target customers, our ability to scale our business, our reliance on infrastructure of third-party network services providers, risk of failure in our physical infrastructure, risk of failure of our software, our ability to maintain the compatibility of our software with third-party applications and mobile platforms, continued compliance with industry standards and regulatory requirements, 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, the amount and timing of costs associated with recruiting, training and integrating new employees, introduction and adoption of our cloud communications and collaboration services in markets outside of the United States, compliance with international regulations, and general economic conditions that could adversely affect our business and operating results. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see “Risk Factors” in the Company’s reports on Forms 10-K and 10-Q, as well as other reports that 8x8, Inc. files from time to time with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and 8x8, Inc. undertakes no obligation to update publicly any forward-looking statement for any reason, except as required by law, even as new information becomes available or other events occur in the future.