RingCentral (NYSE:RNG) news for the cloud communications company on Tuesday include a major deal with Alcatel-Lucent have RNG stock taking off.
The deal has RingCentral working with Alcatel-Lucent, a networking and communications company, to create a new cloud solution named Rainbow Office. The two companies will manage the service together. It will allow customers to more quickly make the move to digital.
RingCentral’s deal with Alcatel-Lucent will have both companies working to develop Rainbow Office. The agreement will also have RingCentral paying $100 million in cash to Alcatel-Lucent. This will grant it “exclusive access, a minimum seat commitment, and future commissions.”
Vlad Shmunis, founder, chairman and CEO of RingCentral, said this about the news.
“We are excited to partner with Alcatel-Lucent Enterprise and to bring our industry-leading cloud communications solutions to their customers and partners. Alcatel-Lucent Enterprise’s strong presence in Europe and beyond will enhance our ability to jointly enable customers and partners accelerate their migration to cloud communication solutions in these markets.”
RingCentral notes that this deal will allow it and Alcatel-Lucent to work together on programs for Rainbow Office. That will allow each of them to take leading positions in the cloud communications sector for enterprise customers. The creation of this service is exclusive to Alcatel-Lucent.
RingCentral says that Rainbow Office will launch in the first quarter of 2021.
RNG stock was up 7.4% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.