Video conferencing provider Zoom, announced plans to acquire cloud-based call center operator Five9 Inc. in a $14.7 billion all-stock deal, its largest acquisition so far, on Sunday.
With millions of people forced to stay at home as a result of the pandemic, people had to devise new means to meet and socialize. Thanks to its profound resonance with social distancing, and proven effectiveness, Zoom has risen to the top and has today become a household name. Individuals, schools, and businesses adopted its services to socialize, hold virtual classes, and meetings.
As competition in the video communications sector intensifies, Zoom attempts to edge over rivals by shifting focus to its two-year-old cloud-calling product Zoom Phone and conference-hosting product Zoom Rooms.
In a statement it made on Sunday, the company said that it expects the acquisition of Five9 to help enhance its presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24-billion contact center market.
Five9 is a pioneer of cloud-based contact center software whose highly scalable and secure cloud contact center delivers a comprehensive suite of easy-to-use applications that allows management and optimization of customer interactions across many different channels. With Five9, Zoom will complement its Phone service, a digital alternative to legacy phone offerings, by adding Five9’s business customers and combining its contact center software to optimize customer interactions across channels. The combination also offers both companies significant cross-selling opportunities to each other’s respective customer bases.
Five9 will become an operating unit of Zoom and its chief executive, Rowan Trollope, will become a president of Zoom, and stay on as the CEO of Five9 after the deal. The transaction has been approved by the Board of Directors of both companies. The Board of Directors of Five9 recommends that Five9 stockholders approve the transaction and adopt the merger agreement. Under the agreement, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom for each share of Five9. The transaction, which is anticipated to close in the first half of 2022, is still subject to approval by Five9 stockholders, regulatory authorities, and other customary closing conditions.
Zoom is the leader in modern enterprise video communications, with an easy, reliable cloud platform for video and audio conferencing, chat, and webinars. Zoom said it is continuously looking for ways to enhance the platform, and that the addition of Five9 is a move that will bring even more value and satisfaction to customers.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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