Wavecell, a Singapore-based communications platform-as-a-service (CPaaS) provider, has been acquired by NYSE-listed cloud provider 8×8 for $125 million in a cash and stock deal.
According to a statement, the $125-million figure represents a less than 4x multiple of Wavecell’s 2019 revenue. It comprises $69 million in cash and $56 million in 8×8 common stock, of which about $12 million of common stock is subject to certain vesting restrictions after a three-year period.
The purchase price was subject to customary adjustments, as well as holdback and escrow arrangements according to terms of the agreement.
Wavecell last raised an oversubscribed $8.2 million Series B round in 2017 from Wavemaker Partners, Qualgro VC and MDI Ventures, the corporate venture arm of Telkom Indonesia.
A statement on the 8×8 acquisition said that the deal allows it to pursue CPaaS globally, and represents an expansion of 8×8’s cloud business from Unified Communications-as-a-Service (UCaaS), Contact Center-as-a-Service (CCaaS), and Video into the CPaaS market.
“8×8 is now the only cloud provider that owns the full, global-scale, cloud-native, technology stack
offering voice, video, messaging, and contact center delivered both as pre-packaged applications
and as enterprise-class APIs,” said Vik Verma, CEO of 8×8, Inc.
The acquisition also expands 8×8’s presence into the Southeast Asian markets of Singapore, Indonesia, Philippines and Thailand, as well as Hong Kong. The company will absorb Wavecell’s R&D team in Asia, its employee base and over 500 enterprise customers in the region such as Paidy, Lalamove and Tokopedia.
“We’re excited to welcome the Wavecell employees to the 8×8 family. We now have a significant market presence in Asia and expect to continue to expand in the region and globally in order to meet evolving customer requirements.”