RingCentral has hired a financial advisor after receiving takeover interest for the voice, video and unified communications as a service (UCaaS) provider, according to Bloomberg.
The takeover chatter isn't surprising. Rival 8x8 reportedly has been up for sale since at least February 2017; Mitel recently acquired ShoreTel; and GoDaddy purchased FreedomVoice in May 2016.
If RingCentral gets acquired, the smart money says the buyer will likely be a private equity firm.
RingCentral Momentum, Challenges
The company has been in growth mode. For its Q2 2017 ended June 30, software subscriptions revenue grew 28% year-over-year to $110.4 million; total revenue grew 30% to $119.4 million; and the company's net loss shrank slightly to 9 cents per share -- down from an 11 cent per share loss in Q2 2016.
RingCentral shares are up about 8.7 percent today amid the M&A chatter.
Despite the upbeat mood, RingCentral faces potential competition from Microsoft -- which is ramping up PBX services for Office 365.
