Paylocity (PCTY - Free Report) recently announced the acquisition of video-sharing tech startup — VidGrid — for an undisclosed amount. The acquisition will help Paylocity enhance its capabilities in the video communication space.
Founded in 2012, VidGrid is one of the leading video platform providers. Apart from recording, hosting, and sharing features, VidGrid’s platform transform videos into a two-way conversation, thereby enhancing employee collaboration, engagement and connection at the workplace.
Paylocity’s latest acquisition is well timed amid coronavirus-led global lockdown which has spurred the necessity of remote working. However, remote working is a serious challenge for organizations in maintaining smooth communication and collaboration with its workforce.
Here, VidGrid’s video platform will help organizations build better communication and collaboration with employees. Users can use VidGrid’s technology to communicate and collaborate about various topics, including training and education, sales, and customer success.
Therefore, VidGrid’s acquisition will help this Zacks Rank #3 (Hold) company lure new clients.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tech Companies Enhancing Remote-Working Tool Capabilities
Paylocity is not the only company which is trying to bank on the opportunities resulting from the coronavirus-induced stay-home wave. Most recently, Palo Alto Networks (PANW - Free Report) announced its agreement to acquire software-defined wide area network provider — CloudGenix— for approximately $420 million. Founded in 2013, CloudGenix helps its clients manage and secure network traffic at branches or distributed locations.
Notably, due to the global quarantine situation, organizations are moving to cloud so that their employees can work from home uninterruptedly. However, transition of workloads to the cloud has several concerns — the most important being security. In the current environment, where a massive global workforce is forced to work remotely, the security risk multiplies several times. Here, with CloudGenix solution, organizations will be shielded from security threats caused by traffic entering their servers from multiple unknown devices.
Furthermore, several other tech companies are enhancing their capabilities and offerings to tap the opportunities from the growing work-from-home trend. Last week, RingCentral (RNG - Free Report) rolled out a video-conferencing product — RingCentral Video (RCV). With message video-phone capabilities, RingCentral’s RCV offers services, including business voice, SMS and fax.
In late March, Avaya Holding (AVYA - Free Report) launched its much-awaited Avaya Cloud Office. The highly-anticipated UC-as-a-Service (UCaaS) is built on RingCentral’s open platform, which offers services, including video conferencing, messaging, calling, file sharing and collaboration across any device or user location.
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