US internet communications group mulls sale

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As smaller players in the telecommunications software and equipment industry  look to consolidation to give them the scale to effectively compete, Morgan Stanley is understood to be working with 8×8, a US internet-based communications firm that is considering a potential sale of the business.

News of the deliberations sent shares in 8×8 – which has a market capitalisation of approximately US$1.47bn – up as much as 14% at one point on February 24.

Sources suggest that San Jose-based 8×8, which uses cloud-based enterprise-class software solutions to enable its clients to communicate, is fielding interest from both rivals and private equity firms, although the sources cautioned that there is no guarantee that any talks would lead to a deal, Reuters reported.

The business provides services to more than 45,000 businesses operating in over 100 countries across six continents and last month reported revenue of US$63.7m in the three months to December 31 2016, taking its total for the nine months to that date to US$186.9m.

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