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Zoom to acquire cloud contact center provider Five9 for $14.7 billion

Zoom to acquire cloud contact center provider Five9 for $14.7 billion

Communications platform company Zoom Video Communications has entered into a definitive agreement to acquire cloud-based contact center solutions provider Five9 in a stock transaction of approximately $14.7 billion, the two companies announced on July 18.

The acquisition will result in a new customer engagement platform with Zoom's comprehensive communications platform, combined with Five9's Contact Center as a Service (CCAS) solution, which will allow both companies to significantly address each other's respective customer bases. will enable providing cross connectivity. Will provide sales opportunities.

It is expected that the addition of the $24 billion contact center market will help Zoom expand its presence with enterprise customers. In addition, it will give Five9 Business customers access to solutions such as the Zoom phone and Zoom's extensive communications portfolio, allowing them to connect through the channel of their choice, said Rowan Trollope, Chief Executive Officer, Five9 on July 18. Mentioned in the press release.

“We are constantly looking for ways to grow our platform, and adding Five9 is a natural fit that will bring even more joy and value to our customers,” said Eric S. Yuan, CEO and founder of Zoom. “Zoom is built on a core belief that robust and reliable communication technology enables interactions that build greater empathy and trust, and we believe that is especially true for customer engagement. Enterprises primarily communicate with their customers through the Contact Center, and we believe this acquisition creates a leading customer engagement platform that will help define how companies of all sizes connect with their customers. Huh. Huh. We are thrilled to be associated with the Five9 team, and I look forward to welcoming them to the Zoom family.”

The board of directors of both the companies have approved the deal. Following the close of the transaction, Five9 will become an operating unit of Zoom, and Trollope will continue in his role as Chief Executive Officer of Five9, reporting to Yuan as well as becoming president of Zoom.

As part of the agreement, for each share of Five9, Five9 stockholders will receive 0.5533 shares of Zoom's Class A common stock. Based on the closing share price of Zoom Class A common stock as of July 16, 2021, this represents a per share price for Five9 common stock of $200.28 and an estimated transaction value of approximately $14.7 billion. Both companies say additional information on the terms and conditions of the acquisition will be made available soon.

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