Center Zoom Video Communications Inc. Eric Yuan, the founder and CEO of Eric Yuan, will respond with an opening bell during the initial public offering (IPO) of the company on Thursday, April 18, 2019 at the Nasdaq MarketSite in New York, USA. Zoom reported a net profit of $ 7.6 million for $ 331 million in revenue for the year ended in January, nine times the $ 1 billion valuation it secured after the $ 1 billion funding round two years ago. Worth it.
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The deal is Zoom’s first $ 1 billion acquisition, which takes place when employees return to their offices in preparation for the post-pandemic world. This is the second largest technology transaction in the United States this year. Microsoft plan $ 16 billion purchase According to FactSet, of Nuance Communications.
“We are continually looking for ways to enhance our platform. The addition of Five9 is a natural fit that provides more happiness and value to our customers,” said Zoom CEO Eric Yuan. Press release..
Five9 closed on Friday with a market capitalization of $ 11.9 billion, or $ 177.60 per share. According to Zoom, Five 9 shareholders will receive 0.5533 shares of Zoom Video Communications for every nine shares of Five. That’s about 14% of Zoom’s market capitalization of nearly $ 107 billion, valuing Five9 as a $ 200.28 per share, a 13% premium.
Zoom is Top growth story Sixteen months after Covid-19 caused the sudden closure of offices around the world, workers in financial, retail, tech and legal offices were forced to communicate remotely.
After increasing revenue by 326% in 2020, Zoom will face a natural slowdown, especially when businesses reopen and face-to-face meetings resume. The company launched a new product to accommodate future business changes, but it’s so big now that organic growth alone can’t satisfy Wall Street. We also need new revenue streams as Microsoft intensifies competition in video chat with Teams.
Zoom’s share price fell 36% after peaking in October last year, but rose almost 400% last year.
Zoom and Five 9 since the start of 2020
Five9 has been available since the beginning of 2020 Demand surges For call center technology that allows representatives to work from home. Enterprises needed to adapt quickly to all types of cloud software, including contact centers.
Last year’s Five9 revenue was up 33% to $ 435 million. CEO Rowan Trollope told CNBC’s Jim Cramer May The company has signed two of the largest deals in the last period and expects to generate more than $ 20 million annually.
“You don’t have to convince your customers that the cloud is no longer an acceptable option,” he said. “They are just jumping in.”
The deal brings together two former Cisco executives. FormerFounded Zoom in 2011, it previously helped build WebEx, which Cisco purchased for $ 3.2 billion in 2007. He stayed at Cisco until he left to start Zoom.
Trollope joined Cisco in 2012 after a 22-year career at Symantec. He was eventually promoted to Senior Vice President of all Cisco collaboration products and was considered by some analysts to be CEO’s Chief Vice President. Chuck Robbins..he Departed I will assume the role of CEO at Five 9 in 2018.
Zoom and Five 9 will host a phone call about Zoom for investors on Monday at 8:30 am New York time.
Zoom acquires cloud contact center provider Five9 for $ 14.7 billion
Source link Zoom acquires cloud contact center provider Five9 for $ 14.7 billion