Communications platform company Zoom Video Communications has entered into a definitive agreement to acquire cloud-based contact centre solutions provider Five9, in an all-stock transaction valued at approximately $14.7 billion, the two companies announced on July 18.
The acquisition will result in an all-new customer engagement platform comprising Zoom’s broad communications platform combined with Five9’s contact centre as a service (CCaaS) solution, offering both companies significant cross-selling opportunities to each other’s respective customer bases.
It is expected to help Zoom increase its presence with enterprise customers by adding the $24 billion contact centre market. In addition, it will provide Five9’s business customers access to solutions such as Zoom Phone and Zoom’s broad communication portfolio, enabling them to engage via their preferred channel of choice, Rowan Trollope, chief executive officer of Five9, noted in a July 18 press release.
“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,” said Eric S. Yuan, chief executive officer and founder of Zoom. “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. Enterprises communicate with their customers primarily through the contact center, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers. We are thrilled to join forces with the Five9 team, and I look forward to welcoming them to the Zoom family.”
The boards of directors of the two companies have approved the transaction. Following the close of the transaction, Five9 will become an operating unit of Zoom and Trollope will become president of Zoom as well as continuing his role as chief executive officer of Five9, reporting to Yuan.
As part of the agreement, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom for each share of Five9. Based on the closing share price of Zoom Class A common stock as of July 16, 2021, this represents a per share price for Five9 common stock of $200.28 and an implied transaction value of approximately $14.7 billion. The two companies say additional information about the terms and conditions of the acquisition will be made available soon.