Lifesize has filed for voluntary Chapter 11 bankruptcy, with Enghouse lined up to acquire a host of its brands.

Enghouse will acquire Lifesize, Kaptivo, ProScheduler, Serenova, and Telstrat as a result of the deal.

To prevent short-term disruption for its customers, Lifesize is finalising $5 million in financing from its existing lender to ensure liquidity during the process. It has also filed “First Day” motions with its bankruptcy.

The additional financing will allow Lifesize to continue its day-to-day operations and pay its employees.

Lifesize is primarily recognised for its in-office UCaaS solutions, a market which suffered during and after the pandemic as hybrid work became the new normal.

Marc Bilbao of FTI Consulting, Co-Chief Restructuring Officer of Lifesize, cited the pandemic’s impact on the market as a significant factor behind Lifesize’s situation:

“Lifesize was founded on the vision of providing life-like visual communication solutions to allow businesses to thrive in a digital world.”

However, due to the global pandemic, the need for in-office video conference solutions evaporated essentially overnight. This ultimately put a pause on Lifesize’s core business model and a strain on its financial structure.”

“During the Chapter 11 process, Lifesize will remain focused on serving its global customer base of omnichannel contact centres and 4K video conferencing solutions.”

Lifesize acquired the CCaaS business Serenova in March 2020 to adapt its portfolio to the era of hybrid working. However, the damage to its financial structure was too significant, and it couldn’t steady the ship.

However, Michael Yoshimura of FTI Consulting, Co-Chief Restructuring Officer of Lifesize, believes that Lifesize can thrive within the Enghouse brand.

“The Lifesize multivendor video meeting connectivity is needed by global enterprises now more than ever,” Yoshimura said. “We are optimistic about the future for the Company and are confident Lifesize can continue to deliver value and certainty to its blue-chip customer base worldwide.”

The Enghouse acquisition has not yet been confirmed, as it still needs to be given the go-ahead by the courts and fulfil bid procedures and deadlines. The deal remains subject to higher or better offers.

Lifesize’s blue-chip customer base ensured the UCaaS provider achieved re-acquisition annual revenues of $150 million.

However, according to Nicolas de Kouchkovsky of CaCube Consulting, this extra income could bolster Enghouse Interactive’s annual revenues of over $300 million. “Additionally, it will enhance the Canadian company’s ability to capitalise on the transition of contact centres to the cloud,” de Kouchkovsky added on LinkedIn.

While the UC market is in a healthy place relative to many other industries during this period of global uncertainty, notable businesses have undergone difficult periods.

The Lifesize news follows Avaya’s recent emergence from Chapter 11 bankruptcy earlier this month. Avaya CEO Alan Maserak updated UC Today on the company’s Chapter 11 situation, debt restructuring, and the “tough decisions” necessary to navigate the process as shareholders and employees lost money.



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