Ooma, a Sunnyvale, CA-based provider of a smart communications platform for businesses and consumers, acquired 2600Hz, a Henderson, Nevada-based provider of a business communications applications targeted at resellers and carriers, for approximately $33 million in cash, subject to customary purchase price adjustments.
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 is expected to add approximately $7 million in annual recurring revenue to Ooma.
With the acquisition, Ooma takes over the direction and development of 2600Hz’s technology road map and will complement the 2600Hz offerings with its proprietary intellectual property to create more scalable and open communications solutions for the industry.
2600Hz has a global customer base leveraging Kazoo, 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.
FinSMEs
23/10/2023