8×8 Announces Acquisition of Web Hosting Provider Central Host, Inc.

May 12, 2010 by  

Web Hosting ServicesSUNNYVALE, CA – 8×8, Inc. (Nasdaq:EGHT), provider of innovative business communications solutions, today announced that on May 1, 2010 it acquired Central Host, Inc., a Los Gatos, California-based company providing managed hosting services and cloud-based computing solutions to business customers.

Central Host’s managed hosting services enable business customers to reduce costs and gain performance and reliability advantages by eliminating in-house ownership of server equipment and costly information technology (IT) systems management staff. The company’s cloud-based services support a wide variety of hosted applications and services via high quality data center space on the west and east coasts, a 24×7 operations staff, state-of-the-art server resources and systems management experts. Central Host currently operates three data centers in Silicon Valley and one data center in New York City.

“Adding managed hosting and cloud computing services to our business service offerings is an ideal extension of our current business,” said Bryan Martin, Chairman and Chief Executive Officer of 8×8, Inc. “We are excited to provide additional enterprise-class services to our customer base, giving us multiple best-of-breed offerings to sell to the same installed base. Central Host’s customers are ideal targets for 8×8’s communications services, and we believe that many of 8×8’s existing customers will benefit from the performance attributes and disruptive pricing of the Central Host offerings. We look forward to discussing the synergies and benefits of this acquisition during our fourth quarter and full-year results earnings conference call on May 19, 2010.”

Under terms of the acquisition agreement, 8×8 paid $1 million in cash and issued 432,276 shares of common stock not registered for sale to Central Host’s sole shareholder. Central Host is a profitable business with approximately $1 million of annual revenue.

“Central Host is thrilled to join the 8×8 team,” said Andy Schwabecher, Central Host’s Founder and now General Manager of Managed Hosting and Cloud-Based Computing at 8×8, Inc. “8×8 runs one of the largest hosted business communication services in the world and is extremely successful in delivering one of the most critical and fundamental pieces of business infrastructure – communications services. By harnessing the strengths of this great team, I believe we have what we need to scale our cloud-based computing services to become the next major player in the managed hosting service market.”

Central Host has relocated to 8×8’s Sunnyvale, California headquarters and will combine its operations with 8×8’s existing Network Operations Center (NOC), sales, customer service and data center operations.

About 8×8, Inc.
8×8, Inc. (Nasdaq:EGHT) leverages its patented software technologies to deliver high quality voice solutions and integrated messaging and video to businesses of any size with employees in any locations on a wide variety of business telephony, web and mobile platforms. 8×8 also offers managed hosting and cloud-based computing services. For additional information, visit www.8×

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