Zoom announces that it will acquire Five9
Video conferencing service provider Zoom announced that it will acquire Five9, a leading provider of intelligent cloud contact centers, in an all-stock transaction, valued at $14.7 billion. Five9’s price per share was $177.6 at the close of last Friday, with a market value of $11.9 billion. Five9 will receive 0.5533 shares of Zoom’s Class A common stock per share, which means that Five9 is valued at $200.28 per share, representing a 13% premium. This is the second-largest technology company acquisition in the United States this year, second only to Microsoft’s US$16 billion acquisition of voice recognition company Nuance Communications.
Zoom Communications / Public domain
Since the outbreak of the coronavirus epidemic, Zoom has been one of the fastest-growing companies in the industry due to the need for remote communication among employees in finance, technology, law, and education. After experiencing a crazy growth of 326% in revenue in 2020, as the epidemic eases, Zoom is facing a slowdown in growth. At the same time, Zoom also needs to face competition from Microsoft Teams and needs a new source of income. Zoom’s stock price has risen nearly 400% last year, but since reaching its peak in October, it has fallen 36%.
Five9 also benefited from the epidemic last year, achieving a 33% annual revenue growth, reaching $435 million. Rowan Trollope, CEO of Five9, said that companies invest a lot of resources in call centers every year, but it is still difficult to provide customers with a seamless experience. The cooperation with Zoom will provide the best solution for Five9’s commercial customers.
