8x8 Inc. (EGHT) Announces Acquisition of Central Host, Inc.

Central Hosting Managed hosting services enable enterprise customers to gain cost advantages and performance and reliability through the elimination of the house by the server computer is expensive and reduce information technology (IT) management systems.

Company cloud-based service supports a variety of applications and services across the data center space for high quality western and eastern shores, a 24x7 operations staff, the state of the server resources and last-generation management systems experts. Host-plant currently has three data centers in Silicon Valley and a computer center in New York.

Valuation Metrics: 8x8 purchased Central for 1.44 to 1.6 X annual revenues. Personally I thought that valuation was light. This deal is much closer to the 2X TDS/VISI deal. It looks like the market is going in a good direction.

8x8 Chairman and CEO Bryan Martin said in a prepared statement: “Central Host's customers are ideal targets for 8x8's communications services, and we believe that many of 8x8's existing customers will benefit from the performance attributes and disruptive pricing of the Central Host offerings,”