Item 2.01 Completion of Acquisition or Disposition of Assets.
On January 18, 2022 (the "Closing Date"), 8x8, Inc., a Delaware corporation (the
"Company"), completed the previously announced acquisition of Fuze, Inc., a
Delaware corporation ("Fuze"), pursuant to the Agreement and Plan of Merger (the
"Merger Agreement"), by and among the Company, Eagle Merger Sub, LLC, a Delaware
limited liability company and wholly owned subsidiary of the Company ("Merger
Sub"), Fuze and Shareholder Representative Services LLC, a Colorado limited
liability company, solely in its capacity as the Seller Agent (the "Seller
Agent"). Pursuant to the Merger Agreement and the terms and conditions set forth
therein, Merger Sub merged with and into Fuze (the "Merger"), with Fuze
surviving such Merger as a wholly owned subsidiary of the Company.
Merger Consideration
Pursuant to the Merger Agreement, the Company acquired 100% of the equity of
Fuze on a cash-free, debt-free basis for approximately $250 million of aggregate
consideration comprised of stock and cash, subject to certain adjustments.
At the effective time of the Merger (the "Effective Time"), each share of Common
Stock, par value $0.0001 per share, of Fuze (the "Fuze Common Stock") issued and
outstanding immediately prior to the Effective Time (other than any cancelled
shares and dissenting shares) was cancelled and extinguished and was converted
into the right to receive, (i) in the case of an accredited holder, a number of
shares of common stock, par value $0.001 per share, of the Company (the "Company
Common Stock"), equal to the Common Stock Exchange Ratio (as defined therein)
(rounded down, on a holder by holder basis, to the nearest whole share of
Company Common Stock), or (ii) in the case of a non-accredited holder, an amount
of cash equal to the Per Common Share Consideration (as defined therein) and, in
each case, if applicable, cash in lieu of fractional shares, subject to any
applicable withholding.
At the Effective Time, each share of Series A Prime Preferred Stock, par value
$0.0001 per share, of Fuze (the "Fuze Preferred Stock") issued and outstanding
immediately prior to the Effective Time (other than any cancelled shares and
dissenting shares) was cancelled and extinguished and was converted into the
right to receive a number of shares of Company Common Stock equal to the Series
A Prime Preferred Exchange Ratio (as defined in the Merger Agreement) (rounded
down, on a holder by holder basis, to the nearest whole share of Company Common
Stock), and, if applicable, cash in lieu of fractional shares, subject to any
applicable withholding.
At the Effective Time, (i) each Fuze option was cancelled and extinguished
without consideration, (ii) each Fuze restricted stock unit ("Fuze RSU") that
was outstanding immediately prior to the Effective Time vested, if unvested, and
was automatically converted into the right to receive, (a) for each share of
Fuze Common Stock subject to such Fuze RSU, (I) an amount of cash equal to the
Per Common Share Consideration for RSU holders that are non-accredited holders
and (II) shares of Company Common Stock equal to the Common Stock Exchange Ratio
(rounded down, on a holder by holder basis, to the nearest whole share of
Company Common Stock) for RSU holder that are accredited holders, or (b) for
each share of Fuze Preferred Stock subject to such Fuze RSU, a number of shares
of Company Common Stock equal to the Series A Prime Preferred Exchange Ratio
(rounded down, on a holder by holder basis, to the nearest whole share of
Company Common Stock), in each case for clauses (a) and (b), net of any
withholding taxes, and (iii) (a) each Fuze Common Warrant was cancelled and
extinguished without consideration, and (b) each Fuze Series A Prime Preferred
Warrant was, upon delivery of certain executed documentation, entitled to
receive, (I) in the case of an accredited holder, a number of shares of Company
Common Stock as calculated in the Merger Agreement, or (II) in the case of a
non-accredited holder, an amount of cash equal to the Per Series A Prime
Preferred Share Consideration (as defined in the Merger Agreement), net of the
exercise price of such Fuze Series A Prime Preferred Warrant.
A portion of the aggregate merger consideration payable to certain Fuze holders
was held back for purposes of the post-closing purchase price adjustment,
indemnification for general matters and for certain special taxes and expenses
of the Seller Agent.
Resale Registration
--------------------------------------------------------------------------------
The Company expects to file a resale registration statement for shares of
Company Common Stock in connection with the transactions contemplated by the
Merger Agreement.
Additional Information
The foregoing description of the Merger and the Merger Agreement does not
purport to be complete and is qualified in its entirety by reference to the full
text of the Merger Agreement, which is filed as Exhibit 2.1 to the Current
Report on Form 8-K filed by the Company on December 1, 2021 and is incorporated
herein by reference.
Press Release
On January 18, 2022, the Company issued a press release announcing the closing
of the Merger.
A copy of the press release is filed as Exhibit 99.1 to this Current Report on
Form 8-K and is incorporated herein by reference.
The press release is furnished and shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or otherwise subject to the liabilities of that Section or Sections 11
and 12(a)(2) of the Securities Act of 1933, as amended (the "Securities Act").
The press release should be read in conjunction with the statements regarding
forward-looking statements, which are included in the text of the release.
Item 9.01. Financial Statements and Exhibits
(a) Financial Statements of Business Acquired.
The financial statements required by this Item 9.01(a) will be filed by
amendment not later than 71 calendar days after the date on which this Current
Report on Form 8-K is required to be filed.
(b) Pro Forma Financial Information.
The pro forma financial information required by this Item 9.01(b) will be
furnished by amendment not later than 71 calendar days after the date on which
this Current Report on Form 8-K is required to be filed.
(d) Exhibits.
Exhibits Description
2.1* Agreement and Plan of Merger, dated as of November 30, 2021, by and among
8x8, Inc., Eagle Merger Sub, LLC, Fuze, Inc. and Shareholder Representative
Services LLC, as the Seller Agent. (incorporated by reference to Exhibit 2.1
of the Company's Current Report on Form 8-K filed with the SEC on
December 1 , 2021).
99.1 Press Release issued by 8x8, Inc., dated as of January 18, 2022.
104 Cover Page Interactive Data File, formatted in Inline XBRL.
* Certain of the exhibits and schedules to this Exhibit have been omitted in
accordance with Regulation S-K Item 601(a)(5).
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses