Why it matters: Verizon's acquisition of BlueJeans is certainly timely given the recent explosion in popularity of video conferencing apps as millions of office employees are now being forced to work out of their homes due to Covid-19 containment efforts. With 5G now rolling out around the globe, such services could become a mainstay in the coming years.
Verizon on Thursday announced it has agreed to purchase cloud-based video conferencing service provider BlueJeans Network. Financial terms of the sale were not published although a source familiar with the matter told The Wall Street Journal that the telecommunications giant was paying less than $500 million for the business.
BlueJeans was founded in 2009. The company's chief commercial officer, Stu Aaron, said they wanted to make video conferencing as comfortable and casual as a pair of jeans (hence the unusual name). These days, BlueJeans serves a variety of businesses including small organizations and multinational brands. As you'd expect, the service has played a significant role in helping its clients maintain operations as work for many has largely shifted home.
Under new ownership, BlueJeans customers will benefit from Verizon's high-speed global network. The platform will also be integrated deeply into Verizon's 5G roadmap, serving as a secure and real-time solution for key growth areas like distance learning, telemedicine and field service work.
Verizon said the founders of BlueJeans and top management teams will become Verizon employees as soon as the deal closes.
Speaking of, both sides expect the acquisition to close in the second quarter pending customary closing conditions.
Masthead credit: Piotr Swat