Verizon Communications (NYSE: VZ) recently announced a "definitive agreement to acquire BlueJeans Network," a rising B2B videoconferencing platform. The acquisition is expected to close during this year's second quarter.
According to CNBC, Verizon will acquire BlueJeans for about $400 million. The Wall Street Journal, however, simply reported that the amount would be for less than $500 million.
"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," said BlueJeans CEO Quentin Gallivan. "We are very excited about joining the Verizon team and we truly believe the future of business communications starts today!"
Gallivan's sentiments are echoed by Tami Erwin, Executive Vice President and Group CEO of Verizon Business. "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," said Erwin. "Collaboration and communications have become top of the agenda for businesses of all sizes and in all sectors in recent months. We are excited to combine the power of BlueJeans' video platform with Verizon Business' connectivity networks, platforms and solutions to meet our customers' needs."
Verizon's move to acquire BlueJeans, in order to compete in the current market of platforms supporting remote work environments, doesn't come as a complete surprise considering the surge in users and popularity when it comes to making calls and staying connected, whether personally or professionally.
Some of BlueJeans' 15,000 customers, all business clients, include Facebook (NASDAQ: FB), Microsoft's LinkedIn (NASDAQ: MSFT) and Red Hat, which is owned by the International Business Machines Corporation, or IBM (NYSE: IBM).
BlueJeans is a direct competitor of popular videoconferencing platforms Zoom Video Communications (NASDAQ: ZM) and Microsoft Teams. Unlike Zoom and Teams, though, BlueJeans doesn't offer any type of free service to its clients.