Poised To Disrupt the Quality Management Market Aimed At Traditional Contact Centers and Dynamic Lines-of-Business
SAN JOSE, Calif. -- June 4, 2015 -- 8x8, Inc. (NASDAQ:EGHT), a leading provider of cloud-based unified communications and contact center solutions, today
announced the company has agreed to purchase certain assets of privately-held Quality Software Corporation (QSC), an innovative developer of cloud-native quality management
capabilities and analytics, and two affiliated companies-including QSC's proprietary software and all associated intellectual property for $3 million in cash and $1.3 million in stock
compensation. The stock portion will be paid out over four years assuming certain conditions are met. The transaction is subject to customary closing conditions and is expected to
close this month.
QSC is one of the newest, most innovative players in the call center performance and analytics marketplace. Based in Delray Beach, Florida with a development center in
Romania, QSC offers a modern, web-based solution for the cloud, with a powerful set of monitoring capabilities for high-touch interactions and a personalized customer
experience-including call recording, screen capture, live monitoring, agent evaluations, speech transcription, reporting and detailed analytics. 8x8 plans to unveil a new cloud-based quality
management product for its Virtual Contact Center solution by the end of 2015. As part of the transaction with QSC, 8x8 intends to hire QSC's Chief Executive Officer, Ryan
Morrissey, as well as the company's development team in Romania. Morrissey will serve as 8x8's new Senior Director of Product Strategy, Cloud Quality Management Solutions,
and be based at the company's headquarters in San Jose, California.
"8x8 is already the driving force behind the business communications market disruption, and with the QSC integration, we expect to lead the same level of disruption for quality
management in the enterprise," said Vik Verma, Chief Executive Officer of 8x8. "Quality management and analytics are an integral part of our customer experience strategy and are
already demanded by most larger contact centers today. With the agility of QSC's cloud solutions, these capabilities can be easily delivered to many other groups beyond the call
center, adding value to key lines-of-business such as sales, help desks and other essential customer engagement functions throughout the enterprise."
"We are excited to be part of the 8x8 team as the company makes its push into the enterprise and continues to grow in the mid-market," said Ryan Morrissey, CEO at Quality
Software Corporation. "Traditionally, the quality management market has been dominated by dated, on-premises solutions, so QSC's cloud-based innovations bring a new level of
flexibility and ease of adoption. Together, we look forward to targeting broader market opportunities in the U.S. and internationally, as well as increasing our engineering capacity in
Romania to support major quality management initiatives-with a keen focus on new workgroup and line-of-business solutions for the enterprise."
8x8 Completes DXI Acquisition
8x8 completed its previously announced acquisition of DXI Ltd on May 29, 2015. The aggregate purchase price for DXI was approximately $25.7 million, consisting of $22.6
million in cash and $3.1 million in the company's common stock (approximately 353,000 shares). The stock portion will be paid out over four years assuming certain conditions are
met. 8x8 funded the aggregate cash purchase price from its cash and investments. DXI recognized approximately $12 million in revenue in the trailing 12 months ended
March 31, 2015. The DXI integration brings an additional 81 employees to 8x8, based in London.
With the closing of both acquisitions, 8x8 believes that fiscal 2016 revenue will range from $202 million-$206 million, representing approximately 24% - 27% year-over-year
growth, and that non-GAAP net income will be approximately 6% of revenue, at the lower end of previously disclosed guidance of 6% - 9%.
Members of 8x8's management team will deliver a series of presentations on the Company's vision, strategy, products, technology, market trends and financial goals today at its
Analyst Day event beginning at 9:00 a.m. until 2:00 p.m. Pacific Time. A live audio webcast of the event and copy of the presentation will be accessible
from the Investor Relations section of the company's website at