Zoom gets back-to-office ready with US$14.7bn acquisition of Five9

Zoom gets back-to-office ready with US$14.7bn acquisition of Five9

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Zoom Video Communications Inc (NASDAQ:ZM) is preparing for when the masses return to their offices with a diversifying acquisition, buying contact centre software provider Five9 Inc (NASDAQ:FIVN). It has struck a US$14.7bn deal to buy Five9 which supplies a suite of cloud-based software that enables companies to set-up and manage their contact centre and staff. Zoom expects the transaction will enhance its presence with enterprise customers. It estimates the contact centre market to be worth some US$24bn. The acquired business is seen as particularly synergistic with the Zoom Phone enterprise service, which is a cloud-based system that's marketed as an alternative to traditional telephone lines for businesses. Eric Yuan, Zoom chief executive, described the combination with Five9 as “a natural fit”. “Zoom is built on a core belief that robust and reliable communications technology enables interactions that build greater empathy and trust, and we believe that holds particularly true for customer engagement,” Yuan said in a statement. “Enterprises communicate with their customers primarily through the contact center, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers.” Five9 chief executive Rowan Trollope, meanwhile, added: “Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers. “Joining forces with Zoom will provide Five9’s business customers access to best-of-breed solutions, particularly Zoom Phone, that will enable them to realize more value and deliver real results for their business. This, combined with Zoom’s ‘ease-of use’ philosophy and broad communication portfolio, will truly enable customers to engage via their preferred channel of choice.” The paper transaction, which has been recommended by the Five9 board, will see Five9 shareholders receive 0.5533 class A shares in Zoom for every Five9 share them own. It implies a per share acquisition price of US$200.28. It is expected that the transaction will close in the first half of the 2022 financial year, subject to shareholder approval. In New York, Five9 stock is indicated 10% at US$196 ahead of Monday’s open.

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