Zoom Video Communications Inc. (NASDAQ: ZM) has signed a definitive agreement to buy leading intelligent cloud contact center provider, Five9 Inc., in an all-stock deal valued at around $14.7 billion. Combining Zoom’s communication platform with Five9’s Contact Centre as a Service solution will change how the business links with customers by creating a consumer engagement platform for the future.
Zoom eyeing a $24B market
The deal will be Zoom’s first major acquisition and comes when the company is preparing for a post-pandemic environment as employees return to work. This is the second-largest US tech transaction behind Microsoft Corp’s (NASDAQ: MSFT) proposed $16 billion Nuance Communications acquisition.
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Five9’s acquisition will help Zoom enhance its presence among enterprise clients and enable acceleration of its long-term growth potential with the addition of the $24B contact Centre market. It’s vital to note that Five9 is a cloud-based contact center software pioneer. Its solution is secure and highly scalable, delivering an extensive suite of easy-to-use applications allowing management and customer interactions optimization in various channels. Zoom CEO and founder Eric Yuan said:
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. 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.
Five9 to operate as a division of Zoom
The business combination offers both companies substantial cross-selling opportunities to their respective client bases. Following the acquisition, Zoom will be vital in bringing customers and companies closers and defining the digital future. Five9 will be operating as a division of Zoom, and its current CEO, Rowan Trollope, will continue in the role and become Zoom President. Trollope said:
Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers. It has always been Five9’s mission to make it easy for businesses to fix that problem and 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.
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