Ooma, Inc., a smart communications platform for businesses and consumers, 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 last Friday. The purchase price was partially funded by a $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 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.
With the transaction, Ooma takes over the direction and development of 2600Hz’s technology roadmap 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 10 years, Ooma has 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 also expands Ooma’s customer base to include service providers and resellers using 2600Hz for its 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.