Zoom Buys Five9 in $14.7B All-Stock Transaction
As competition in the videoconferencing market heats up, Zoom signs an agreement to acquire the cloud-based call center operator Five9 Inc.
Zoom Video Communications Inc. made its largest-ever purchase, a $14.7 billion all-stock deal to buy the cloud-based call center operator Five9 Inc.
According to Axios, this is Zoom's first billion-dollar acquisition and the second-largest American tech deal this year, following Microsoft's $16 billion acquisition of Nuance Communications.
Zoom's buyout price is around 60% higher than the $9.2 billion it was valued at in its 2019 IPO, indicating how favorable the conditions of the public markets and the epidemic have been to the videoconferencing app, according to the same source.
Furthermore, Zoom CEO Eric Yuan said in a statement “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 deal is projected to close in the first half of 2022. It still needs consent from Five9 shareholders.