A RingCentral (New York Stock Exchange: RNG(acquisition 8×8)Nasdaq: EGHT) makes sense, according to analyst Piper Sandler, after an investor indicated he owned stakes in both companies and planned to meet with the management teams. Ring Central jumped 19%while 8×8 increased by 15%.
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analyst The comments come after investor Sylebra Capital disclosed a 12.4% ownership in 8×8 (EGHT), according to 13d filing Friday. Separately, Sylebra also reported differently 13d filing 8.7% stake in RingCentral (RNG). The fund said it intends to talk to relevant departments about certain topics, including possible strategic transactions such as business combinations.
“We’ve long seen that a potential merger between RingCentral and a CCaaS operator makes sense given the market dynamics in CCaaS versus its core UCaaS business,” analyst Piper Sandler James Fish wrote in a note Friday. “Combining the two potentially results in cost synergies, a better integrated product suite, and higher market share for UCaaS.”
Comments from analysts and share investors followed on the heels after a StreetInsider report in November said so RNG approached 8×8 about a potential takeover. Earlier in November, the publication also reported that 8×8 had been approached by a strategic buyer.
Sylebra, which is chaired by Dan Gibson, a former partner at Coatue Management, declined to comment to Research Alpha about what specifically it plans to talk to corporate management about.
Earlier on Friday, RingCentral (RNG) was upgraded to buy in Needham, due to stabilizing growth and improving free cash flow.
RingCentral (RNG) is scheduled to present at the Jefferies Software Conference on Wednesday.