8x8 completes acquisition of Contactual, Inc.

19th September 2011 - 8x8, Inc. provider of innovative cloud communications and computing solutions announced that it has completed the acquisition of privately-held Contactual, Inc., a provider of cloud-based call center and customer interaction management solutions. 8x8 agreed to acquire Contactual for 6,700,000 shares of unregistered 8x8 common stock, but this share amount was reduced at closing by 215,100 shares in exchange for 8x8's agreement to pay statutory tax withholding on behalf of five former executives of Contactual, Inc. 8x8 originally announced its intent to buy Contactual on September 12, 2011. The transaction closed on September 15, 2011.

The acquisition of Contactual significantly broadens 8x8's technological expertise and service offerings in the hosted SaaS (Software as a Service) call center market and brings in house the only major software technology of 8x8's service offerings that was not owned and developed by 8x8. 8x8 has been reselling the Contactual contact center technology since 2007. This strategic investment is one of several recent initiatives implemented by 8x8 to advance its mission of becoming the industry's premier provider of broad-based cloud communications and IaaS (Infrastructure as a Service) solutions.

"Together, 8x8 and Contactual become a formidable competitor in the customer interaction management and contact center space," said 8x8 Chairman & CEO Bryan Martin. "With our combined resources, longevity in the market and proven solution, we are in a unique and powerful position to quickly and effectively meet the needs of the growing number of businesses seeking non-premise, cloud-based call center services."

The acquisition is expected to be immediately accretive to 8x8's full fiscal year net income after the exclusion of any one-time costs associated with the acquisition and amortization expenses. Contactual's revenue for calendar year 2010 was approximately $8.3 million, inclusive of approximately 10% of revenue received from 8x8. For the three and six-month periods ended June 30, 2011, Contactual's unaudited revenue was approximately $2.5 million and $4.8 million, inclusive of approximately 9% of revenue received from 8x8 during each of these periods. Thirty-two former employees of Contactual have joined 8x8 as part of the transaction.

About 8x8, Inc.

8x8, Inc. (Nasdaq:EGHT), a pioneer in the development of cloud-based VoIP, video, mobile, and unified communications solutions, leverages its patented software technologies to deliver industry-leading SaaS applications to businesses of any size with employees in any location. We offer integrated business communications and cloud computing services that are designed to meet the highest levels of availability, reliability and scalability. Increasingly, businesses are finding they can reduce costs, improve productivity, and be positioned competitively for the future by choosing 8x8 for their mission critical, cloud-based communications and computing needs. For additional information, visit www.8x8.com

Category: Acquisitions & Mergers