In the largest acquisition in the company’s history, Zoom is set to acquire cloud-based contact center standout Five9 for $14.7 billion as Zoom’s market reach and sales have skyrocketed with millions turning to the video communication superstar during the global COVID-19 pandemic. Specifically, Zoom is looking for Five9 to boost its Zoom Phone offering.
Zoom CEO Eric Yuan said combining Zoom’s communications platform with Five9’s Contact Center as a Service (CCaaS) will create the customer engagement platform of the future that will transform how businesses connect with their customers.
“The addition of Five9 is a natural fit that will deliver even more happiness and value to our customers,” said Yuan in a statement. “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. 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.”
[Related: The 10 Hottest Edge Computing Devices Of 2021 (So Far)]
The blockbuster acquisition gives Zoom entry into the roughly $24 billion worldwide contact center market as Five9 is a top-notch provider of cloud contact center software.
“Businesses spend significant resources annually on their contact centers but still struggle to deliver a seamless experience for their customers,” said Five9 CEO Rowan Trollope in a statement. “It has always been Five9’s mission to make it easy for businesses to fix that problem and engage with their customers in a more meaningful and efficient way.”
Five9 has over 2,000 worldwide customers with its Intelligent Cloud Contact Center providing digital engagement, analytics, workflow automation, workforce optimization and practical AI to help customers reimagine their experience.
Trollope, who will become president of Zoom once the deal closes, said joining forces with Zoom will provide Five9’s business customers access to “best-of-breed solutions, particularly Zoom Phone” in order to deliver more value and results. “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,” said Trollope, who will report directly to Yuan.
The acquisition is expected to close in the first half of calendar year 2022.
Five9’s technology will boost Zoom Phone, which is a cloud phone system that offers a digital alternative to legacy phone offerings, enabling organizations to connect and interact in new and convenient ways. The combination of Zoom and Five9 also offers both companies significant cross-selling opportunities to each other’s customers.
As part of the agreement, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom Video Communications for each share of Five9. Based on the closing share price of Zoom Class A common stock as of July 16, 2021, it represents a per share price for Five9 common stock of $200.28 with an implied transaction value of approximately $14.7 billion, according to Zoom.
Disclaimer: This post has been auto-published from an agency/news feed without any modifications to the text and has not been reviewed by an editor.