Zoom Video Communications Inc., its video conferencing app It became a household name In the midst of a pandemic, we plan to use part of the resulting rise in stock prices for a $ 14.7 billion acquisition to secure growth globally.
Five9 Inc, a cloud-based customer service software provider.For all stock trading, Zoom Potential products for business and enterprise clients.. Growth opportunities will allow Zoom to enter the $ 24 billion contact center market, the company said on Sunday.
Zoom started Trading in the public market in 2019Is one of the biggest beneficiaries from the transition to telecommuting and distance learning. The value of the company’s stock has more than tripled since the widespread blockade in the United States and elsewhere over a year ago.
Zooming in for the last few months Make sure it can keep growing Even after the pandemic has diminished and people have returned to the office to move to hybrid work.
In a blog post announcing the deal, Zoom CEO Eric Yuan said, “The trend towards hybrid workers accelerated last year, the move to the cloud for contact centers progressed, and customers customized. There is a growing demand for personalized experiences. ”
Former said the Five 9 deal would be helpful Supports the company’s zoom phone business, Replace your office phone system with cloud-based services.
Zoom isn’t the only tech company to take advantage of rising stock prices to fund large-scale acquisitions.Business software provider
Salesforce.com Co., Ltd.
Agreed to acquire last year
Slack Technologies Co., Ltd.
for $ 27.7 billion in stocks and cash— One of the most prominent examples of big players in cloud computing racing that adds muscle to the pandemic remote work boom.
Advanced Micro Devices Co., Ltd.
Agreed to buy a rival chip maker last year
Xilinx Co., Ltd.
Zoom’s revenue surged over the three months to April 30 About $ 965 million from 191% from a year ago.. According to FactSet, the value of the company’s stock has doubled since last year, with Zoom having a market capitalization of $ 106.7 billion.
Zoom has become known primarily for providing free video conferencing services during pandemics, but as companies move to connect with their employees and customers, so too have paid users. Zoom has reached the end of the year with approximately 467,100 customers with more than 10 employees. This is about a 6-fold increase over the previous year.
As part of the agreement, Five9 shareholders will receive 0.5533 Zoom Class A common stock per share of Five9 Inc. Zoom shares have increased by more than 46% over the past year due to the increase in users since the pandemic hit.
“By working with Zoom, Five9 business customers will have access to the best solutions, especially Zoom Phones, to achieve more value and bring real results to their business,” he said. Rowan Trollope, CEO of Five9, said.
According to Zoom, the boards of directors of both companies have approved the deal, which requires approval by Five9 shareholders. The deal is expected to close in the first half of 2022 and requires regulatory approval, he said.
When the transaction is complete, Five9 becomes Zoom’s operating unit. Trolop will continue to play his role, becoming President of Zoom and reporting to Yuan.
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Zoom in and buy Five9 for $ 14.7 billion worth of all-stock trading
Source link Zoom in and buy Five9 for $ 14.7 billion worth of all-stock trading