Who’s the Next Buyout Target? 8×8, Inc. (EGHT), BroadSoft Inc (BSFT) and More

This is a mixed bag. BroadSoft is more profitable than Acme and knows how to grow revenue, to boot. But it’s also a more expensive stock with a P/E ratio north of 85. This is another unlikely acquisition target right now.

But then, market makers totally ignored another voice-over-IP specialist: 8×8, Inc. (NASDAQ:EGHT) went nowhere on Monday, despite being the most likely follow-up acquisition target in this sector (to my mind).

Like BroadSoft, 8×8 specializes in high-margin software and services. Like Sonus, this stock looks objectively cheap today. With a $500 million market cap, it’s also a much smaller than either of the billion-dollar potential targets we just discussed.

If I was into betting on networking buyouts, my money would be on 8×8. It’s kind of crazy how little attention the stock is getting on a day like this.

The article Who’s the Next Buyout Target? originally appeared on Fool.com and is written by Anders Bylund.

Fool contributor Anders Bylund owns shares of Sonus Networks, but he holds no other position in any company mentioned. Check out Anders’ bio and holdings or follow him on Twitter and Google+. The Motley Fool owns shares of Oracle. Motley Fool newsletter services have recommended buying shares of Acme Packet.

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