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Zoom Stocks Climb, to Acquire Cloud Software Provider Five9

On Monday morning in Asia, July 19, Zoom stocks climbed as it announced its acquisition of Five9. Five9 is a cloud software company, targeting clients aiming to boost customer engagement.

Zoom Video Communications Inc jumped 1.45%, with a net gain of $5.16. This sent the stocks higher to $361.97 per share.

The company stated that it agreed to buy Five9 in an all-stock deal that values $14.7 billion. The latter’s shareholders will get 0.5533 shares of Zoom Class A common shares. This represents $200.28 for each share of the common stock of Five9, which is a 13% premium to the closing price last Friday. 

Zoom also said that the acquisition would assist in enhancing its presence with enterprise clients. This will allow the firm to accelerate its long-term growth opportunities by affixing the $24 billion contact centre marker.

The company added that the purchase would complement Zoom Phone Service, which is an alternative to legacy phone offerings.

In addition, Five9’s business customers will merge with Zoom’s centre software. Hence, the interaction of their customers across channels will be optimized.

Moreover, its stock price has been pulled back from its peak last October. Last year it was able to reach $588 amid speculations that the demand for video call software will lessen in the post-pandemic era.

Based on the deal, Five9’s chief executive, Rowan Trollope, will become the company’s president as he stays on as unit chief after the deal.

The deal should close in the first half of 2022. Furthermore, Five9 will operate a unit of Zoom.

 

Pandemic Impact

 

Furthermore, in the early days of the coronavirus pandemic, Zoom’s daily meeting participants grew 30 times over 300 million from its 10 million users.

Also, the annualized Zoom meeting minutes jumped from 100 billion in January 2020 to 3 billion by October of the same year. Moreover, its employee base doubled to 5,000.

Over the past year, the company sharply spiked 45% as a conferencing platform.

Alongside, Cisco Systems Inc’s Webex and Microsoft Teams also saw a surge in usage due to the stay-at-home setup, which is a shift to online working, learning, and socializing.

According to an analyst, this year, the global spending on cloud-based conferencing should reach $5.41 billion from $5.02 billion last year.

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