Box Deal for SignRequest Unlikely to Have Materially Impact on Docusign (DOCU) - William Blair

William Blair analyst Bhavan Suri weighed in on Docusign Inc. (NASDAQ: DOCU) after Box (NYSE: BOX) announced that it had acquired SignRequest for $55 million.

"While this acquisition adds to the e-signature competitive landscape, we do not believe it materially impacts DocuSign’s business," Suri commented.

"DocuSign is the clear leader in the e-signature market given its ability to service customers and develop innovative product offerings," he added. "For example, in 2019 DocuSign spent more on R&D than any of its competitors produced in e-signature revenue. In terms of the Box acquisition, DocuSign spent $139 million on R&D in 2019, versus SignRequest’s $55 million deal value earlier today. We view DocuSign’s R&D investments as building a competitive moat around the company’s solutions and their ability to exhibit durable growth moving forward

The firm reiterated an Outperform on DOCU.

For an analyst ratings summary and ratings history on Docusign Inc. click here. For more ratings news on Docusign Inc. click here.

Shares of Docusign Inc. closed at $239.84 yesterday.

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