Verizon Business, the enterprise division of telecommunications firm Verizon, agreed to acquire BlueJeans Network, a US-based video conferencing software developer backed by telecoms firm Deutsche Telekom, yesterday.
Financial terms were not disclosed, but the Wall Street Journal reported the deal was below $500m in size. The transaction is expected to conclude by the end of June 2020.
Founded in 2009, BlueJeans runs a cloud-based platform enabling enterprise clients to organise video conferences and hold large-scale interactive events online.
The technology will be integrated into Verizon Business’ offering as Verizon looks to expand its range of secure communication tools using 5G mobile connectivity, in areas such as telemedicine, field-service work and remote teaching.
BlueJeans has raised $175m in total, most recently closing a $76.5m series E round in 2015 that was led by New Enterprise Associates and which included Norwest Venture Partners, Accel, Battery Ventures, Glynn Capital, Quadrille Capital and Jeter Ventures, reportedly at a $725m valuation.
The round included unnamed additional investors, and deals database CrunchBase lists Deutsche Telekom subsidiary Deutsche Telekom Capital Partners (DTCP) as a participant. DTCP named BlueJeans as a portfolio company in 2014, Deutsche Telekom having formed a strategic partnership agreement with the company three years earlier.
Verizon Business CEO Tami Erwin 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.
“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.”
