On Sunday, Zoom, the popular video conferencing firm, has announced that they have agreed to buy Five9, a cloud call center service provider. The acquisition is worth around $14.7 billion in an all-stock transaction.
Zoom, which was valued at about $9 billion at its IPO two years ago, is leveraging the rise in stock price for its first major acquisition.
The deal is expected to close in the first half of 2022 and after the acquisition, Five9 will become an operating unit of Zoom.
Zoom’s latest acquisition is an attempt to expand its offerings beyond video conferencing. The video conferencing software company, in the past year, has added several office collaboration products, an all-in-one home communications appliance, and a cloud phone system.
Five9 has over 2,000 customers worldwide, including Under Armour and Citrix, and processes over 7 billion minutes of calls annually.
The acquisition will benefit Zoom by entering the $24 billion market for contact centers.
In a statement, Eric S. Yuan, founder and chief executive of Zoom, 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.”
The firms said that joining the forces will offer both firms “significant” cross-selling opportunities.
Rowan Trollope, chief executive of Five9, 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.”
“This, combined with Zoom’s ‘ease-of use’ philosophy and broad communication portfolio, will truly enable customers to engage via their preferred channel of choice.”