Business

Zoom buys cloud name centre firm Five9 for nearly $15bn

Zoom Video Communications, the video conferencing start-up whose companies turned globally in style through the coronavirus pandemic, has agreed a deal to purchase cloud software program supplier Five9 for about $14.7bn in its first main acquisition.

The all-stock transaction values Five9 shares at $200.28 with shareholders within the firm set to obtain 0.5533 shares of Zoom class A typical inventory. Shares in Five9 closed at $177.60 on Friday.

Zoom’s take care of Five9, which affords name centres through cloud computing, will assist develop the corporate’s Zoom Telephone providing. It comes because the San Jose, California-based firm prepares for a post-pandemic slowdown following its explosive progress in 2020.

Within the 12 months to January 31, Zoom’s annual gross sales quadrupled to $2.65bn and its share worth has risen greater than 400 per cent for the reason that begin of 2020, although it stays under its October excessive.

Eric Yuan, Zoom’s chief govt, has been desirous to capitalise on the massive viewers that signed as much as its companies final yr as thousands and thousands of individuals have been compelled to log into digital conferences throughout lockdowns. He stated this yr that the corporate would transfer to develop its vary of communications companies.

“We’re repeatedly searching for methods to reinforce our platform, and the addition of Five9 is a pure match that may ship much more happiness and worth to our clients,” Yuan stated in an announcement on Sunday.

Whereas Zoom is predominantly identified for its video conferencing companies, it has been selling numerous workplace collaboration merchandise together with Zoom Telephone, a cloud telephone system, and its convention software program, Zoom Rooms.

Five9’s software program is utilized by quite a lot of corporations that Zoom is in search of to displace, together with Microsoft Groups and Salesforce. In 2017, Mike Burkland, now the corporate’s chair, advised Barron’s that he anticipated Five9 to be bought by considered one of its bigger companions.

Blake

News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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