Ooma Acquires 2600Hz, Inc., A Leader in Communications Applications For Service Providers
October 23 2023 - 6:00AM
Business Wire
Ooma, Inc., a smart communications platform for businesses and
consumers, today announced that it has acquired 2600Hz, Inc., a
leader in modern and flexible business communications applications
targeted at resellers and carriers, for approximately $33 million
in cash, subject to customary purchase price adjustments. 2600Hz is
expected to add approximately $7 million in annual recurring
revenue to Ooma.
The transaction was completed on October 20, 2023. The purchase
price was partially funded by a new $30 million revolving line of
credit facility with Citizens Bank, N.A. Additionally, following
the closing, certain former 2600Hz employees who join Ooma will be
granted equity awards under Ooma's 2015 Equity Incentive Plan,
subject to vesting conditions.
2600Hz (https://www.2600hz.com/) has a global customer base
leveraging Kazoo (https://2600hz.org/), its open-source
communications solution, and a suite of proprietary applications
through open APIs to provide Unified Communications as a Service
(UCaaS), Communications Platform as a Service (CPaaS), Call Center
as a Service (CCaaS) and AI tools and applications. With the
transaction, Ooma takes over the direction and development of
2600Hz’s technology road map and will complement the 2600Hz
offerings with Ooma’s proprietary intellectual property to create
more powerful, scalable and open communications solutions for the
industry.
As a proponent and user of 2600Hz open-source applications for
more than ten years, Ooma has extensively integrated its
intellectual property with 2600Hz. The acquisition advances Ooma’s
integrated business service through the addition of Call Center,
CPaaS and AI capabilities. It will also expand Ooma’s customer base
to include service providers and resellers utilizing 2600Hz for
their bespoke offerings. For 2600Hz, the acquisition will
strengthen its solution by leveraging Ooma’s low-cost telecom
infrastructure and scale, as well as its mobile, web, desktop and
other applications.
“We’re delighted to welcome 2600Hz into the Ooma portfolio of
business solutions,” said Eric Stang, chief executive officer of
Ooma. “This acquisition is complementary to our strategy to extend
our leadership in serving business customers, both directly and now
through other service providers, and it is expected to accelerate
overall growth of Ooma and the reach of our solutions. We are
excited to bring Ooma’s unique engineering expertise to better
serve 2600Hz’s customers worldwide.”
Orrick, Herrington & Sutcliffe LLP acted as legal advisor to
Ooma, and Beyers Costin Simon PC acted as legal advisor to
2600Hz.
Conference Call Information
Ooma management will hold a conference call to discuss the
2600Hz acquisition today, October 23, at 10:30 am Eastern time. To
access the call by phone, please visit
https://register.vevent.com/register/BI00518d05a3d14b3b823682e95da583ce
to register and receive the dial-in details. To avoid delays, Ooma
encourages participants to dial into the conference call ten
minutes ahead of the scheduled start time. For webcast listening,
please visit Ooma’s Events & Presentations page
https://investors.ooma.com/news-events/events-presentation for a
link.
Following the call, an archived version of the webcast will be
available on the Ooma investor relations site at
https://investors.ooma.com for 12 months.
About Ooma, Inc.
Ooma (NYSE: OOMA) creates powerful connected experiences for
businesses and consumers, delivered from its smart cloud-based SaaS
platform. For businesses of all sizes, Ooma provides advanced voice
and collaboration features including messaging, intelligent virtual
attendants and videoconferencing to help them run more efficiently.
For consumers, Ooma’s residential phone service provides PureVoice
HD voice quality, advanced functionality and integration with
mobile devices. Learn more at www.ooma.com or www.ooma.ca in
Canada.
Forward-Looking Statements
This release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Statements in this press release that are not statements of
historical or current fact constitute “forward-looking statements.”
The forward-looking statements contained in this press release
include, without limitation, statements related to the expected
benefits of the 2600Hz, Inc. acquisition. These forward-looking
statements involve known and unknown risks, uncertainties and other
unknown factors that could cause the actual results of Ooma to be
materially different from the historical results or from any future
results expressed or implied by such forward-looking statements.
Such risks, uncertainties and unknown factors include, among
others, the retention of the former employees and customers of
2600Hz and the ability of Ooma to successfully integrate the
acquired company and to achieve expected benefits from the
acquisition. In addition to statements that explicitly describe
such risks and uncertainties readers are urged to consider
statements labeled with the terms “believes,” “belief,” “expects,”
“projects,” “intends,” “anticipates” or “plans” to be uncertain and
forward-looking. The forward-looking statements contained herein
are also subject generally to other risks and uncertainties that
are described from time to time in Ooma’s filings with the
Securities and Exchange Commission, including under Item 1A, “Risk
Factors” in the Company’s Annual Report on Form 10-K for the fiscal
year ended January 31, 2023 filed on April 8, 2023, and in its
subsequent reports on Forms 10-Q and 8-K. Investors are cautioned
not to place undue reliance on such forward-looking statements,
which speak only as of the date they are made. Ooma undertakes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20231023923901/en/
MEDIA CONTACT: Mike Langberg at Ooma press@ooma.com
650-566-6693
INVESTOR CONTACT: Matt Robison at Ooma ir@ooma.com
650-300-1480
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