8×8 acquires Singapore-based cloud communications platform Wavecell for USD 125 million

Wavecell was backed by notable Southeast Asian VCs before the acquisition.

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Cloud communications and customer engagement provider 8×8 Inc. has acquired Singapore-based global Communications Platform-as-a-Service (CPaaS) Wavecell in a deal worth approximately USD 125 million in cash and stock.

Comprising of USD 69 million in cash and USD 56 million in 8×8 common stock, this is almost four times Wavecell’s anticipated revenue for 2019.

8×8 is a cloud provider of voice, video, chat, and contact center solutions for over one million users worldwide. This acquisition deepens the company’s solutions in communications to include CPaaS services.

The company will also tap on Wavecell’s presence in Southeast Asian markets including Singapore, Indonesia, the Philippines, and Thailand for its global expansion and coverage.

Wavecell has a large pool of enterprise customers—like Paidy, Tokopedia, and Lalamove—as well as a research and development center in Asia that will allow 8×8 to further accelerate its growth in the region.

Over the past nine years, Wavecell has raised USD 9.9 million in five funding rounds.

The company is funded by three investors: Qualgro, a Southeast Asia-focused fund; MDI Ventures, a corporate venture capital initiative by Telkom Indonesia; and Wavemaker Partners, an early-stage venture capital firm headquartered in Los Angeles and Singapore.