Craig-Hallum Sees 'Tremendous Logic' for RingCentral (RNG)/8x8 (EGHT) Merger

Craig-Hallum analyst George Sutton sees "tremendous logic" in a potential RingCentral, Inc. (NYSE: RNG)/8x8, Inc. (NASDAQ: EGHT) merger.

"We are believers that the two companies would make great sense together, the economics should be outstanding for RingCentral as a buyer and for 8x8 as a seller. The market opportunity for both businesses continues to be significant with cloud adoption still in its infancy. Only 21M seats out of ~400M have moved to cloud (~5% penetration). Combining both businesses would create a powerhouse to go out and capture more of this opportunity with better unit economics and would likely alleviate some of the concern that’s plagued the stock (commoditization and competition) through the “removal” of RNG’s top competitor."

SI NOTE: Recently StreetInsider.com reported that RingCentral has approached 8x8, Inc. (NYSE: EGHT) about a potential takeover.

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