Zoom CEO Eric Yuan stated that the company is always looking for promising ways to seek enhancement and Five9 seems to be a perfect fit to branch out and adapt.
Zoom Video Communications Inc (NASDAQ: ZM) has recently announced an acquisition with a cloud contact center called Five9. The deal is worth $14.7 billion and marks the first-ever deal to be initiated by zoom to adopt the new cloud center activities. The deal is centered around the recent post-pandemic situation where the corporations shall resume their work from office premises and will require additional cloud service essentials for accelerated productivity and profits.
The deal has been termed as the second largest deal to be made after Microsoft‘s planned $16 billion purchase of Nuance communications.
Zoom All Set to Acquire Five9
Zoom CEO Eric Yuan has stated in a press release that the company is always looking for promising ways to seek enhancement and Five9 seems to be a perfect fit to branch out and adapt. Yuan also asserted that this acquisition will be proven more beneficial and valuable to the customers in the long run.
Zoom has been one of the top-rated companies that have successfully been able to maintain a steady rise in prices and revenue in the world stricken by a pandemic. The company has seen rapid growth in its services as various offices had to resume work from their homes during covid 19 surges. The app facilitated high-quality video calls and was able to deliver timely work meetings and updates from employees working remotely in sporadic settings.
The company’s success graph has witnessed a slight organic decline in revenue due to offices being operational again after the pandemic. The company also faces direct competition from a contemporary Microsoft video app called Teams and needs new revenue sources to combat growing competitors and increase their revenue. Zoom has also introduced new products to combat such issues and is all set to enter into an acquisition with Five9 to keep the sales steady and equal.
Five9 has also been regarded as one of the promising companies offering call center technology where the company would provide cloud service technology to employees working from home. Five9s revenue had registered a striking spike of $33 million to $435 million due to many corporations resuming work from home due to covid 19.
The transaction is expected to close in the first half of 2022. Five9 stockholders are yet to approve the deal as it requires a preliminary clearance. As per additional reports, Goldman Sachs is said to have advised Zoom on this potential acquisition whereas Frank Quattrone’s Catalyst Partners seems to have advised Five9. The two companies will be hosting a zoom call for investors at 8:30 am New York time to discuss future proceedings.
Five9 stock closed on Friday at $177.60. Zoom has also announced that the stockholders will receive an additional 0.5533 shares of Zoom video communication on each Five9 share purchase. Five9 is now valued at $200.28 per share and represents 14% of Zoom’s market price of $107 billion.