Cloud Stocks: Analysis Of Box’s Acquisition Of SignRequest

Box’s SignRequest Acquisition

Recently, Box announced its acquisition of the Netherlands-based, SignRequest for $55 million. Founded in 2014 by Geert Jan Persoon, Michaël Krens, and Nick Dessens, SignRequest helps customers sign documents on their online platform. Box also previewed its e-signature capability Box Sign, which has been developed on SignRequest’s technology. Box Sign will be included in Box’s business and enterprise plans and is natively embedded in a cloud content management platform. It will allow customers to modernize the way they work by digitizing processes that are important, while also ensuring that their agreements are securely managed and governed in its content cloud.

According to a Fortune Business Insights report, the global digital signature market is estimated to grow at 29% CAGR to reach $8 billion by 2027. The market is dominated by players like DocuSign and Adobe. Box plans to address this market with its latest acquisition. Box itself believes that the digital signature market will grow to more than $20 billion in the years to come as more companies globally will adopt the solution for multiple users. It expects improved security features to become more important to ensure compliance with regulations like HIPPA for health-care applications and FINRA for financial transactions. As of now, Box does not plan to compete with DocuSign and Adobe, and will continue to offer integrations with these vendors for document signatures. Instead, it believes its digital signature strategy needs to focus on bringing “e-signature to the masses.

Its stock is currently trading at $22 with a market capitalization of $3.52 billion. It touched a 52-week high of $26.47 in March and a 52-week low of $14.90 in April last year.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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