Zoom is taking advantage of the impressive rise in its share price last year to make its first major acquisition. The popular video conferencing company, whose IPO was valued at about $9 billion, said Sunday evening that it had agreed to a deal involving five cloud call center service providers for about $14.7 billion in a stock transaction. After the deal, the 20-year-old will become an operating unit of five 9 Zooms, which is expected to close in the first half of 2022, the two companies said.
The proposed acquisition is the latest attempt to expand Zoom’s offerings. Over the past year, video conferencing software has added a number of office collaboration products, a cloud phone system, and an all-inclusive home communication tool. The five 9 acquisitions – which have attracted more than 2,000 customers worldwide, including Citrix and Under Armor, and more than a billion minutes of calls a year – will help Zoom enter the “$24 billion “market for communications centers, the agency said.
Eric S. Yuan, founder and chief executive of Zoom, said in a statement, “We are constantly looking for ways to expand our platform and the addition of five 9 is a natural fit that will provide more happiness and value to our customers.”
The joining forces will allow both companies to cross-sell “significant” at each other’s respective customer bases, the two companies said. “Businesses spend significant resources annually on their communications centers but strive to provide a seamless experience for their customers,” said Rowan Trolop, chief executive of Five-9.
“Five’s mission has always been to make it easier for businesses to solve problems and engage with their customers in a more meaningful and effective way. Joining forces with Zoom will give five business customers access to the best-of-breed solutions, especially the Zoom phone, which will enable them to realize more value and deliver real results for their business. This, combined with Zoom’s ‘ease of use’ philosophy and extensive communications portfolio, will enable customers to engage through the channels of their choice.” The company will call a joint zoom on Monday to share more about the transaction.