Zoom is exploiting the great ascent in its stock cost in the previous year to make its first major acquisition. The well known video conferencing firm, which was esteemed at about $9 billion at its IPO two years prior, said Sunday evening it has concurred a deal to purchase cloud call centre service provider co-op Five9 for about $14.7 billion in an all-stock transaction.
20-year-old Five9 will become an operating unit of Zoom after the deal, which is relied upon to shut in the first half of 2022, the two firms said.
The proposed acquisition is Zoom’s most recent attempt to grow its offerings. In the previous year, the video conferencing software has added a few office collaboration products, a cloud phone system, and an all-in-one home communications appliance.
The acquisition of Five9 — which has amassed more than 2,000 clients overall including Citrix and Under Armor and processes more than 7 billion minutes of calls yearly — will assist Zoom with entering the “$24 billion” market for contact centers, the organization said.
“We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers,” said Eric S. Yuan, founder and chief executive of Zoom, in a statement.
Uniting will offer the two firms “significant” cross-selling opportunities in one another’s respective client bases, the two firms said.
“Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers,” said Rowan Trollope, chief executive of Five9.
“It has always been Five9’s mission to make it easy for businesses to fix that problem and engage with their customers in a more meaningful and efficient way. Joining forces with Zoom will provide Five9’s business customers access to best-of-breed solutions, particularly Zoom Phone, that will enable them to realize more value and deliver real results for their business. This, combined with Zoom’s ‘ease-of use’ philosophy and broad communication portfolio, will truly enable customers to engage via their preferred channel of choice.”
The two firms will do a joint Zoom call Monday to share more about the transaction.