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LiveVox To Become Second CCaaS Public Company With SPAC Deal

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Chris Katje
·2 min read
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CCaaS LiveVox is going public with SPAC Crescent Acquisition Corp (NASDAQ: CRSA) in a deal valuing the company at $840 million.

The SPAC Deal: Golden Gate Capital will own 59% of the company after the merger. Current Crescent Acquisition Corp shareholders will own 30% of the company after the merger.

The company will trade as LVOX on the NASDAQ after the merger is completed.

About LiveVox: After the SPAC merger, LiveVox will be the second public pure play CCaaS (contact center as a service) company. The company has over 14 billion interactions annually.

LiveVox uses artificial intelligence and digital applications to help customers. The company helps customers by reducing or eliminating friction points like security, compliance and data integration.

Related Link: 10 SPACs Trading Under For Investors To Consider In 2021

Competition: The main competitor for LiveVox is Five9 (NASDAQ: FIVN). Shares of Five9 are up over 130% in the last year.

With its artificial intelligence implementation, LiveVox is offering a more cost-effective and painless solution. LiveVox says it can implement its solution in three weeks compared to the six-month average of others. The costs are also lower with an average of $50,000 versus $500,000 for competitor’s services.

The SPAC deal values LiveVox at 6.5x 2021 estimated revenue. Five9 trades at 24.9x its estimated 2021 revenue. The multiple for peer companies is 17x.

Growth Ahead: The company’s presentation highlights an $83 billion total addressable market by 2030, compared to $27 billion currently.

LiveVox has been winning larger enterprise customer contracts over time. In the first half of 2020, the company signed a top 25 bank and top 10 fintech customer to deals. The second half saw the company add a top five bank, top 35 bank, top 10 bank, top five retailer, top 10 bank and top five bank.

LiveVox has 325 customers compared to more than 2,000 for Five9.

The larger enterprise wins are helping LiveVox have a higher revenue per customer of $317,000 versus $200,000 for Five9. LiveVox is forecasting revenue to hit $129 million in fiscal 2021, representing year-over-year growth of 26%.

Price Action: Crescent Acquisition shares are up 7% to $11.10 on Thursday.

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