RingCentral Is Said to Hire Adviser After Takeover Interest

(Bloomberg) -- Cloud-based software maker RingCentral Inc. is working with an adviser after receiving takeover interest, according to people familiar with the matter.

RingCentral could attract interest from technology-focused private equity firms and other cloud-based software providers, two of the people said. RingCentral may choose not to proceed with a deal, the people said, asking not to be identified as the details aren’t public. Shares rose 10 percent to $39.55 at 10:44 a.m. in New York, valuing the company at $3 billion.

A representative for RingCentral declined to comment.

Private equity firms have spent almost $20 billion on acquiring technology companies in the past 12 months, according to data compiled by Bloomberg. Apollo Global Management LLC agreed to buy cloud-services company Rackspace Hosting Inc. for $4.3 billion last August, and Vista Equity Partners announced a $2 billion deal to acquire DH Corp. and combine it with Misys Ltd. in March.

San Mateo, California-based RingCentral last week reported second-quarter revenue of $119.4 million, up 30 percent from the same period a year ago. Its net loss narrowed to 9 cents per share from 11 cents. In June, it added former Yahoo! Inc. finance chief Kenneth Goldman to its board of directors.

The company, which went public in 2013, runs a platform that connects devices for corporate clients, allowing them to link employees’ smartphones, tablets, desktop computers and landline telephones to communicate via voice, text and fax. It generates most of its revenue from subscriptions, including those sold through resellers including AT&T Inc.