According to company officials, 8x8, Inc., which sells cloud communications and computing products, has signed a definitive agreement to acquire privately-held Contactual (News - Alert), which sells cloud-based call center and customer interaction management tools.
"8x8 is committed to becoming the industry's premier provider of cloud-based communications and mission critical services and applications to businesses of all sizes," said Bryan Martin (News - Alert), Chairman and CEO of 8x8.
8x8 resells Contactual's call center technologies as part of its business communications services. It will be an all-stock transaction that will not exceed 6.7 million shares of common stock of 8x8, company officials say, adding that they expect the transaction to close prior to September 30. Contactual's revenue for calendar year 2010 was approximately $8.3 million, inclusive of approximately 10 percent of revenue received from 8x8.
Contactual’s acquisition is intended to enhance 8x8's suite of cloud services, especially its position as a single source provider of Software as a Service and IaaS Infrastructure as a Service products.
As a result of the acquisition, Contactual Call Center products will be offered as a resale opportunity to all 8x8 channel partners as part of the company's recently launched go-to-market channel program which provides partners with the ability to resell a broad range of cloud based services.
Earlier this month TMC’s (News - Alert) Paula Bernier wrote that in the August issue of INTERNET TELEPHONY, 8x8 CEO Martin talked about his plans to alter the company’s sales approach, noting that at the recently-concluded ITEXPO (News - Alert), one of the leaders of that change – Kim Niederman, 8x8’s senior vice president of worldwide sales – talked about the value proposition of cloud services for the company’s channel partners.
Cloud is the next shift, said Niederman, “and it’s not so much a shift in technology as it is a shift in go-to-market.”
That said, it’s important that channel partners understand this shift and how it can affect their businesses, and increase their revenue, Niederman said. He added that the channel can earn 2.5-times-plus more per year in recurring revenue, and more upfront revenue, by selling SaaS (News - Alert)- and IaaS-based services.
David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.Edited by Chris DiMarco