Zoom Video Communications, Inc. [NASDAQ: ZM] has planned to purchase Five9, Inc. [NASDAQ: FIVN]. Zoom is targeting a call center offeror to strengthen its famous video conference app against toughening competition. Zoom is planning to pay $14.7 billion for acquiring Five9, Inc.
The firm has decided to utilize its soaring stock to pay for the deal. Zoom will give Five9 investors 0.5533 shares of its Class A common stock under a deal disclosed on Sunday. The target firm will become a working unit of Zoom after the deal, which is dependent on the authorization of shareholders and scheduled to execute in the first half of 2022.
The clients of Five9 comprise big names like Under Armour, Citrix, Athena Health, and Lululemon. The deal is planned as a way for Zoom and Five9 to sell products to the clients of each other. Rowan Trollope, CEO of Five9, will become a president at Zoom while at the same time continuing to run Five9 as a working unit. Goldman Sachs instructed Zoom and Qatalyst Partners guided Five9.
Furthermore, Zoom got a reputation after the pandemic struck in early 2020. In 2020, when people got hit at home, they need service which helps them to connect with the people remotely. But investors feared whether the growth will remain the same this year as vaccinations surge and closures end.
Additionally, the acquisition is the fourth deal by Zoom since the start of the pandemic. In June, Zoom disclosed without revealing the terms that it had inked a deal to buy German startup Karlsruhe Information Technology Solutions-kites GmbH, a translation software maker.