Top video conferencing platform Zoom has announced a deal to buy cloud-powered call center provider Five9 for approximately $14.7 billion.
In a press release, Zoom said it believes the acquisition will “transform how businesses connect with their customers,” as it strives to build the “customer engagement platform of the future”.
The company has seen a huge surge during the pandemic period, with workers across the globe forced to work from home and embrace video calls – but with many companies now mandating a return to the office, Zoom is now looking to diversify its interests and stay profitable.
Founded in 2001, Five9 currently has at least 1,620 employees and serves at least 2,000 clients, according to the company’s LinkedIn page. It provides digital engagement, analytics, workflow automation, workforce optimization and practical AI, helping its customers “reimagine the customer experience”.
The deal will be an all-stock transaction, and has already been approved by both companies’ Boards of Directors, although Five9 stockholders still need to approve the purchase.
After the transaction, Five9 should become an operating unit of Zoom, with Rowan Trollope becoming Zoom President, as well as remaining Five9 CEO, reporting to Eric Yuan.
Furthermore, the company expects “significant cross-selling opportunities” for both companies, and hopes to see Zoom playing an “even greater role in driving the digital future.” The company’s Zoom Phone platform also gets a mention, with the hardware likely to become a common sight in Five9 offices.
The deal is expected to be closed in the first half of 2022, and is still subject to regulatory approval and other customary closing conditions.
“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 Yuan.
“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.”