RingCentral Stock (NYSE:RNG)
An analyst from Piper Sandler believes it would make sense for RingCentral (NYSE:RNG) to acquire 8×8 (NASDAQ:EGHT) after hearing from an investor that he had shares in both firms and intended to meet with the management team. The investor mentioned that he had stakes in both companies. The growth of Ring Central stock was 19%, whereas that of 8×8 was 15%.
The remarks made by the analyst came after an investor named Sylebra Capital reported a 12.4% ownership in 8×8 (EGHT), as stated in a 13D filing submitted on Friday. In a separate 13D filing, Sylebra disclosed an 8.7% ownership holding in RingCentral. The fund said it intended to speak to the respective management about specific issues, including prospective strategic deals, such as corporate mergers.
According to a note by Piper Sandler analyst James Fish published on Friday, “We have long viewed the potential merger of RingCentral, and a CCaaS player made sense given the market dynamics in CCaaS vs. its core UCaaS business.” “The combination of the two would almost certainly result in cost synergies, an improved combined suite of products, and an increased UCaaS market share.”
After a story from StreetInsider in November claimed that RNG had contacted 8×8 about a possible acquisition, the analysts’ remarks and the investor position followed shortly after that. Additionally, earlier in November, the journal revealed that 8×8 had been contacted by a strategic buyer.
Earlier Friday, Needham recommended RingCentral stock from hold to buy, highlighting the company’s more stable growth and stronger free cash flow.
On Wednesday, a presentation for RingCentral (RNG) is set to take place at a Jefferies Software Conference.
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