Video conferencing platform Zoom is planning to acquire cloud contact center firm Five9 in an approximate $14.7 billion all-stock deal.
Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom Video Communications for each share of Five9. The transaction is anticipated to close in the first half of 2022.
“We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit,” Zoom Founder and Chief Executive Officer Eric S. Yuan said in a press release. “Zoom is built on a core belief that robust and reliable communications technology enables interactions that build greater empathy and trust, and we believe that holds particularly true for customer engagement.”
He added that many businesses use a contact center to communicate with their customers and the acquisition of Five9 will “redefine how companies of all sizes connect with their customers.”
The addition of Five9’s contact center as a service (CCaaS) solution is anticipated to boost Zoom’s presence with enterprise customers and gives Zoom inroads to the $24 billion contact center market, according to the release.
“Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers,” Five9 CEO Rowan Trollope said.
The acquisition of Five9 also complements Zoom’s cloud phone system called Zoom Phone, which offers a digital alternative to help organizations connect and engage. The combined entity also brings both companies an increased level of cross-selling opportunities. Zoom said it expects that the addition of Five9 will give it a “greater role in driving the digital future.”
Five9 will become a separate division of Zoom following the close of the deal. It is anticipated that Trollope will become a president of Zoom and continue as CEO of Five9, reporting to Yuan.
Zoom said in March that it expects that the demand for remote business tools will remain high even after the pandemic is long in the rearview mirror. In May, Zoom launched an experiences tool called OnZoom that was piloted in October 2020. During the trial, paid Zoom customers were able to create, host and profit from extending classes, lessons or theater.