Zoom Video Communications, Inc. (NASDAQ: ZM) has reached a formal purchase agreement to acquire Five9, Inc., a leading supplier of intelligent cloud contact centers, in an all-stock deal valued at $14.7 billion, according to their news blog on July 18.
In essence, the move will bring together Five9’s Contact Center as a Service (“CCaaS”) solution with Zoom’s comprehensive communications platform and change how organizations communicate with their consumers, laying the groundwork for future customer engagement platforms.
In particular, the purchase is intended to strengthen Zoom’s profile with business clients while also allowing it to accelerate its long-term growth opportunities by bringing it into the $24 billion contact center industry.
Chief Executive Officer and Founder of Zoom, Eric S. Yuan, confirmed:
“We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers.”
Moreover, the acquisition of Five9 complements its rising popularity with its Zoom Phone service, a cloud phone system that provides a digital alternative to conventional phone solutions, allowing businesses to communicate and engage in innovative ways to keep their operations running.
Chief Executive Officer of Five9, Rowan Trollope, stated:
“It has been Five9’s mission to make it easy for businesses to engage with their customers in a more meaningful and efficient way. 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.”
The deal aims to strengthen customer relations
Furthermore, the merger will provide both firms with the considerable cross-selling potential to their respective clients. For instance, Zoom will play a more prominent role in advancing the digital future and bringing enterprises and their consumers closer together thanks to the purchase.
While the deal has been accepted by the boards of directors of Zoom and Five9, the acquisition, which is expected to finalize in the first half of 2022, is subject to Five9 shareholder approval, receipt of relevant regulatory clearances, and other customary closing conditions.
Naturally, Five9’s Board of Directors recommends that shareholders accept the transaction and the merger agreement.