Zoom Strikes $15 Billion Deal to Acquire Five9, a Cloud Based Call Center Operator

Zoom and Five9 deal update…Get the details

Tuesday, 20th July 2021

Zoom Video Communications Inc has struck a deal worth $14.7 billion to buy Five9 Inc, a cloud-based call center operator. The all-stock deal is Zoom’s largest-ever acquisition as the company is making headway beyond its fundamental services of video conferencing.

Ever since the coronavirus pandemic has made its presence felt, Zoom has become a household name and a means of communication for businesses and students alike. Offices and schools use this on a day-to-day basis to conduct daily classes, meetings and also socialize.

However, investors and analysts have got thinking now about the long-term sustainability of Zoom’s services as vaccination drives are underway in full swing, and chances of life slowly getting back to normalcy seems a near possibility.

Moreover, as tech giants and rival companies like Microsoft Corp, Cisco Systems Inc, and Alphabet Inc’s Google, are close at heels, the question plaguing them is how Zoom will carry on the streak of growth it has been enjoying so far.

Five9 is a firm that has a vast client base all over the world who use their call center software to interact with their customers. They have over 2,000 firms that use their services and include the likes of Under Armour, Lululemon Athletica Inc, and Olympus Corp.

Also Read: WhatsApp Launches Joinable Group Calls, Allowing Users to Get Out Of the Call and Rejoin.

According to Barclays analyst Raimo Lenschow’s note, the deal makes good sense for Zoom as it gives them the opportunity to diverge from its core offering and will in turn help it accelerate its product roadmap.

In a statement released on Sunday, Zoom said, “The acquisition is expected to help enhance Zoom’s presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24-billion contact center market.”

The company based out of San Jose, California, has started looking at its other subsidiary offerings like its cloud-calling product Zoom Phone and conference-hosting product Zoom Rooms and focusing on their development as more and more players in the market bring in competition.

As per terms of the deal struck between the two companies, Five9 stockholders will receive 0.5533 shares of Zoom stock for each share of Five9.

After the announcement, Zoom shares went down 1.5 percent on Sunday while Five9 shares shot up by 6 percent.

The News Talkie Bureau

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