2 minute read | October.24.2023
Ooma Inc. has acquired 2600Hz, Inc., a leader in modern and flexible business communications applications targeted at resellers and carriers, for $33 million in cash, on a cash-free and debt-free basis. Ooma will also grant $5.85 million in incentive equity to employees.
The purchase price was partially funded by a new $30 million revolving credit facility provided by Citizens Bank, N.A.
Orrick advised Ooma on both the acquisition and the financing.
Ooma creates powerful connected experiences for businesses and consumers, delivered from its smart cloud-based SaaS platform.
For businesses, the company provides advanced voice and collaboration features including messaging, intelligent virtual attendants and videoconferencing. For consumers, Ooma’s residential phone service provides PureVoice HD voice quality, advanced functionality and integration with mobile devices.
2600Hz has a global customer base leveraging Kazoo, its open-source platform, and a suite of proprietary applications through open APIs to provide Unified Communications as a Service, Communications Platform as a Service, Call Center as a Service and AI tools and applications.
As a proponent and user of 2600Hz open-source applications for more than 10 years, Ooma has extensively integrated its intellectual property with 2600Hz.
With the transaction, Ooma takes over the direction and development of 2600Hz’s technology road map. Ooma said it will complement 2600Hz’s offerings with its proprietary intellectual property to create a more powerful, scalable and open communications solutions for the industry.
The acquisition advances Ooma’s integrated business service through the addition of Call Center, Communications Platform as a Service and AI capabilities. It will also expand Ooma’s customer base to include service providers and resellers using 2600Hz for 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 and desktop applications.
The Orrick team that advised Ooma includes Stephen Venuto, Bill Hughes, Zac Padgett, Samantha Caluori, Neil Bhatt, Victor Oriard, Eric Wall, Michael Wiesner, Juliano Banuelos, Lynne T. Hirata, Zachary Finley, Russell Hoffman, Kyung Park, Jason D. Flaherty and Deborah Ann Abernathy.