Comprehensive M&A data with integrated detailed company information

RingCentral receives buyout interest: Bloomberg
Posted on Thursday, 10 August 2017 13:49
California-based RingCentral has hired an adviser following approaches on a possible takeover, people familiar with the matter told Bloomberg.

The cloud-based business phone system provider may attract interest from private equity firms and industry buyers, two of the sources said.

Shares closed at USD 38.80 yesterday, valuing the company’s Class A and B stock at around USD 2.97 billion.

This represents an increase of 8.1 per cent over USD 35.90 the previous day.

RingCentral declined to comment on the report.

According to Bloomberg, private equity firms have splashed out nearly USD 20.00 billion on technology companies in the past 12 months.

Golden Gate Private Equity completed the acquisition of Neustar, a cloud-based provider of real-time information and analytics, for USD 2.90 billion earlier this week.

Apollo Global Management is expected to buy communication and network infrastructure firm West Corp later this year for USD 5.10 billion, including debt.

RingCentral was founded by former Ring Zero Systems chief Vlad Shmunis in 1999, with services launched four years later.

The company’s communications software-as-a-service enables small businesses to make their telephone systems more professional and easy to manage.

It integrates voice, fax and text into one network, allows remote employees to connect via wireless devices, and consolidates all calls into one bill.

The majority of the company’s revenue comes from subscriptions, including those sold through partners such as AT&T.

RingCentral was bootstrapped until 2006 before receiving funding from Sequoia Capital and Khosla.

Cisco, Scale and DAG Ventures later joined as investors.

The company completed its initial public offering in 2013, with USD 112.13 million worth of stock sold on the New York stock exchange, including a greenshoe option.

Two years later RingCentral bought Glip, a Florida-based cloud messaging and collaboration platform, for an undisclosed sum.

© Zephus Ltd