Zoom buys Five9 in $ 14.7 billion deal to prepare for post-pandemic world

by



[ad_1]

Zoom (ZM) announced the acquisition on Sunday evening. In a statement, he said the move “will help strengthen Zoom’s presence with corporate clients and enable it to accelerate its long-term growth opportunity.”

Five9 provides software to customer service centers for more than 2,000 customers around the world.

The agreement any stock will give Five9 (FIVN) shareholders approximately 0.5 Class A common share of Zoom for each Five9 share they own.

Eric Yuan, the billionaire of Zoom CEO and Founder, said adding Five9 was a natural fit.

“Businesses communicate with their customers primarily through the contact center, and we believe this acquisition creates a premier customer engagement platform that will help redefine the way businesses of all sizes connect with their customers.” , did he declare. said in a statement.

Everyone you know uses Zoom. It was not the plan

Scott Kessler, an analyst who heads technology, media and telecommunications coverage for Third Bridge, said the deal “appears intended to expand the company’s offerings and relationships, as well as its total addressable market.”

“It should be noted that this would be by far the largest M&A deal ever for Zoom … possibly designed to have an impact from a diversification perspective,” Kessler told CNN Business .

Last June, Zoom announced its intention to acquire the German company Kites, which develops real-time machine translation. The terms of this agreement were not disclosed.
Zoom, a 10-year-old company based in San Jose, Calif., Has been one of the biggest success stories of the pandemic.
Just two years ago, the company was valued at nearly $ 16 billion. Its market capitalization has since swelled to around $ 106.7 billion.
CEO of Zoom: My advice for teleworkers who are on videoconferencing all day

But while the coronavirus crisis has helped Zoom become a household name, the company faces pressures to find new avenues for growth as economies reopen and the need for remote conferencing diminishes.

Even with its runaway success, analysts say Zoom will eventually need to add new features to encourage more people to pay for its services as well.

The company’s latest acquisition allows it to enter a whole new sector: customer service centers. Zoom itself mentionned On Sunday he was looking to “build the customer engagement platform of the future,” while believing he was entering a “$ 24 billion contact center market.”

The two companies will hold a Zoom call on Monday to share more details on the deal.

– Samantha Murphy Kelly contributed to this report.



[ad_2]

Source link