On Sunday, Zoom Video Communications Inc (ZM.O) announced a $14.7 billion all-stock deal to buy cloud-based call centre operator Five9 Inc (FIVN.O). This will be its first significant acquisition.
The popular video conferencing firm has become sought-after by businesses and educational institutions after the coronavirus pandemic. The company’s value is currently around $106 billion.
“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 centre market,” Zoom said in a press statement.
The acquisition will complement Zoom Phone service, an alternative to legacy phone offerings. Adding Five9’s business customers and combining its contact centre software to optimize customer interactions across channels, it said.
Five9 will become an operating unit of Zoom. Its chief executive, Rowan Trollope, will become the company’s president, staying on as chief of the unit after the deal, which is expected to close in the first half of 2022, the release further said.
Under the pact, approved by the boards of both companies, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom for each share of Five9, it added.