Mumbai: Zoom is all set to buy Five9 – an intelligent cloud contact centre provider in an all-stock deal valued at $14.7 billion. With Five9’s acquisition, Zoom will enhance its platform and aims to tap opportunities in the $24 billion contact centre market.
“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, CEO and Founder – Zoom.
In a statement, the company said it has entered into a definitive agreement to acquire Five9 in an all-stock deal worth around $14.7 billion. The acquisition allows Zoom to combine Five9’s contact centre-as-a-service (CcaaS) solution with its broad communication platform.
It aims to transform how businesses connect with their customers and build the customer engagement platform of the future.
“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,” Yuan explained on the technology aspects of Five9 buyout.
“We are thrilled to join forces with the Five9 team and look forward to welcoming them to the Zoom family,” added Yuan.
Five9 is a pioneer of cloud-based contact centre software and offers a highly scalable and secure cloud contact centre. It provides a comprehensive easy-to-use applications suite that allows management and optimization of customer interactions across many different channels.
“Businesses spend significant resources annually on their contact centres, but still struggle to deliver a seamless experience for their customers,” said Rowan Trollope, CEO – Five9.
“It has always been Five9’s mission to make it easy for businesses to fix that problem and engage with their customers in a more meaningful and efficient way,” added Trollope.
According to Trollope, Zoom will provide Five9’s business customers access to best-of-breed solutions, particularly Zoom Phone for business customers.
Zoom Phone is a modern, cloud phone system that offers a digital alternative to legacy phone offerings. It enables organisations to connect and interact in new and convenient ways to keep businesses moving.
The deal also offers both companies significant cross-selling opportunities to each other’s respective customer bases. Post the deal, Five9 will become a unit of Zoom and Rowan Trollope will lead as President of Zoom and continue as Five9 CEO reporting to Eric Yuan.
The Boards of Directors of Zoom and Five9 have approved the transaction. The Board of Directors of Five9 recommends that Five9 stockholders approve the transaction and adopt the merger agreement.
The transaction will get close in the first half of 2022. It is subject to Five9 stockholders and regulatory approvals and other customary closing conditions.
Goldman Sachs & Co. LLC is serving as an exclusive financial advisor for this deal. Cooley LLP is serving as legal counsel to Zoom. Qatalyst Partners is serving as exclusive financial advisor and Latham and Watkins LLP is serving as legal counsel to Five9.