Investment has been completed on Jul 25, 2022
- Net profit
Fuze is a collaboration software platform that enables remote work. Unfortunately, Fuze faced a negative scenario of acquisition. In July 2022, the investment closed with -100% result.
The platform offers a seamless transition between voice, video, messaging, and content sharing. It also provides real-time analytics solutions. Fuze opted to develop its own in-house technologies, it has patents under its belt.
The global unified communications market size is expected to reach $344.84B by 2028 and to expand at a CAGR of 20.5% from 2021 to 2028, according to ResearchAndMarkets.
Technological proliferation along with work-from-home trends in the communication sector is expected to offer growth opportunities over the forecast period. IT directors began to redirect workforce communication from informal instant messaging (WhatsApp) to corporate messengers to ensure data security. The departure from legacy phone systems is inevitable. More than 60% of companies have resolved to switch to VoIP when their landline contracts end, according to a study on business telephony.
We bought Fuze stock at $2.31 in September 2020 at a valuation of $660M.
Unfortunately, Fuze faced a negative scenario of acquisition. Earlier this year, the 8×8 company acquired Fuze. The terms of the transaction turned out to be unfavorable for the holders of ordinary shares – payments amounted to $0.01 per share (estimated at $250M during the M&A transaction in June 2022).
In case of unfavorable acquisition during M&A transactions, the amount of payments to shareholders is different. Payments depend on the type of shares and the stage, when they have been issued. First, the buyer company makes payments in full to holders of preferred shares in the early and later stages, then the remaining funds are distributed among holders of ordinary shares. Thus, on July 20, 2022, the investment, excluding commissions, ended with a -100% result.