PRESS RELEASE: 8×8, Inc. 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. 8×8 plans to unveil a new cloud-quality management product for its Virtual Contact Center solution by the end of 2015. As part of the transaction with QSC, 8×8 intends to hire QSC’s Chief Executive Officer, Ryan Morrissey, as well as the company’s development team in Romania. Morrissey will serve as 8×8’s new Senior Director of Product Strategy, Cloud Quality Management Solutions, and be based at the company’s headquarters in San Jose, California.
“8×8 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 8×8. “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 8×8 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.”
8×8 Completes DXI Acquisition
8×8 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. 8×8 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 8×8, based in London.
With the closing of both acquisitions, 8×8 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%.