Verizon acquires BlueJeans Network, a cloud-based video conferencing service in California, with the aim to increase it’s enterprise communications business and expand it’s 5G portfolio.
CNBC reported that the price of the deal was around $400 million with the details not being disclosed while The Wall Street Journal reported that Verizon will pay less than $500 million for the company.
Verizon said in a company statement that “BlueJeans will be deeply integrated into Verizon’s 5G product roadmap, providing secure and real-time engagement solutions for high growth areas such as telemedicine, distance learning, and field service work,”.
In the statement, Verizon said that “BlueJeans’ founders and key management team will join Verizon to lead the continued growth and innovation of the business. BlueJeans employees will become Verizon employees immediately following the close of the deal.”
Verizon acquires BlueJeans at a time where Zoom’s share price has skyrocketed due to companies remote working in response to the Coronavirus. The main difference between BlueJeans and competitors such as Zoom and Skype is that the videoconferencing app only has a paid version and is aimed at businesses.
Quentin Gallivan, CEO, BlueJeans Network said: “The combination of BlueJeans’ world class enterprise video collaboration platform and trusted brand with Verizon Business’ next generation edge computing innovation will deliver highly differentiated and compelling solutions to our joint customers,”
Tami Erwin, EVP and CEO, Verizon Business said: “As the way we work continues to change, it is absolutely critical for businesses and public sector customers to have access to a comprehensive suite of offerings that are enterprise ready, secure, frictionless and that integrate with existing tools,”
Verizon’s company’s public shares have stayed strong during the Coronavirus pandemic with the company trading at $57.04 this afternoon.
BlueJeans has over 15,000 customers who include Facebook, LinkedIn, and Nordstrom indicating that the platform is highly secure and lives up to its offer of end-to-end encryption.
Verizon should learn from Zoom’s mistake about misleading statements and ensuring their customer’s data is encrypted seeing as since then businesses have asked their teams and the US Senate has advised members not to use Zoom for calls.
The transaction is subject to customary closing conditions and is expected to close in the second quarter. Evercore and Goodwin Procter served as advisors to BlueJeans, and Debevoise & Plimpton as advisor to Verizon.
