Verizon inked a deal to buy video conferencing company BlueJeans Network, in a bid to bolster its enterprise communications business and expand its portfolio of 5G use cases.
Financial terms of the deal were not disclosed, but CNBC reported a price of approximately $400 million. BlueJeans Network employees will transfer to Verizon and key management personnel will continue to lead the business following a completion expected in the current quarter.
In a statement, Verizon said the conferencing platform will be “deeply integrated” into its 5G product roadmap, allowing it to better serve target applications including telemedicine, distance learning and field service work.
BlueJeans Network CEO Quentin Gallivan added the combination of its video platform with Verizon’s edge compute capabilities “will deliver highly differentiated and compelling solutions to our joint customers”.
Tami Erwin, EVP and CEO of Verizon Business, noted collaboration tools have risen to the “top of the agenda” for businesses of all sizes in recent months, as the Covid-19 (coronavirus) pandemic resulted in a shift to remote work.
She said “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”.
BlueJeans, along with rival services Skype and Zoom, all offer varying levels of encryption.
Zoom recently faced intense scrutiny of its security practices and promised to beef up encryption protocols after a boom in usage associated with the pandemic exposed weaknesses in its software.