Zoom is taking advantage of the impressive growth in its stock price over the past year to make its first major acquisition. The popular video conferencing firm, which was valued at about $9 billion in its IPO two years ago, on Sunday evening said it has agreed a deal to buy cloud call center service provider Five9 in an all-stock transaction for about $14.7 billion. is expressed.
Both firms said the 20-year Five9 deal would become an operating unit of Zoom, which is expected to close in the first half of 2022.
The proposed acquisition is the latest attempt to expand Zoom’s offering. Over the past year, video conferencing software has added a number of office collaboration products, a cloud phone system, and an all-in-one home communication tool.
The company said the acquisition of Five9 — which has amassed more than 2,000 customers worldwide including Citrix and Under Armor and processes more than 7 billion minutes of calls annually — would give Zoom a “$24 billion” market for contact centers. will help you enter.
“We are constantly looking for ways to grow our platform, and adding Five9 is a natural fit that will bring even greater joy and value to our customers,” said Eric S. Yuan, founder and CEO of Zoom, in a statement. will do.” .
The two firms said joining forces would give the two firms “significant” cross-selling opportunities across each other’s respective customer bases.
“Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers,” said Five9 Chief Executive Rowan Trollope.
“Five9’s mission has always been to make it easier for businesses to fix that problem and connect with their customers in a more meaningful and efficient way. The association with Zoom will give Five9 business customers access to best-of-breed solutions, specifically the Zoom phone, which will enable them to realize greater value and deliver real results for their business. This, combined with Zoom’s ‘ease of use’ philosophy and extensive communications portfolio, will enable customers to connect through the preferred channel of their choice.
The two firms will hold a joint Zoom call on Monday to share more details about the transaction.