Let's not forget that the CEO has mentioned numerous times that they have existing customers who want the ability to use their services overseas. Not only does this acquisition gain them what voice net already has on the books but allows to up sell eght's existing customers to the uk platform. This needs to be factored in. I also seriously doubt that in this day and age that eght's management can't do some simple calculations and come up with a fair market price to purchase a company. Let's not forget these guys graduated with phdA's from a premier university. They r no dummies.
8x8 can easily afford the $18.4 million for Voicenet Solutions without resorting to raising additional moneys. After all, they have over $60 million in cash and no debt according to their last quarterly report.
Selling 12.5 million shares with a possible additional 1.875 million shares should raise any where from $125 million to over $144 million. This together with over $40 million remaining after the current acquisition of Voicenet Solutions would bring 8x8's cash position to anywhere from $165 million to $185 million or more.
This would suggest 8x8 has larger fish to fry.
ZERO DEBT and $180 million cash makes this company's balance sheet the strongest I've seen for a small cap growth stock. It's a false comparison to weigh $18.44M against 1000 customers alone. There's other fixed assets, intellectual property, brand equity, etc. But most important to recognize here is that an overseas acquisition like this one SAVES our company money because the costs involved for a U.S. company in developing this space organically in UK/Europe would be more costly in term of both time and money. I'm not invested in EGHT for her it's dividends so dilution won't change much fore me. Shares short will decrease on this price pullback and we've reinforced our price bottom. Both the company, and the stock are stronger.
Sentiment: Strong Buy
cl... You're absolutely correct. Finally, the company is moving beyond organic linear growth into move aggressive growth through M&A. This is their best chance to be around in 5 years. That said, maybe someone can help us understand why 1,000 customers was worth $18.4MM? I realize that there are operational and maybe licensing assets -- worth what -- maybe $10M? Then we're still looking at $8,400/customer? Just a guess, like the fact that we're finally reaching out -- but would like to know more about the pricing of the deal...
The shelf registration is a terrific signal. If people are worried about 19% dilution, they might want to own T or VZ...
Anyway, those that sell 8x8 in panic are simply providing the rest of us with cheaper shares. Thank you.
All the very best,
What that tells you is, that there are big things ahead for 8x8.
These plans must have been in the works for quite awhile, that's probably why we got our new CEO, to put a more qualified man into that position.
Brian Martin is the inventor type, now we need an M&A type.
Sentiment: Strong Buy