- Zoom Video Communications, Inc. (NASDAQ: ZM) announced it entered into a definitive agreement to buy Five9, Inc. (NASDAQ: FIVN) in a $14.7 billion. These are the details.
Zoom Video Communications, Inc. (NASDAQ: ZM) announced it entered into a definitive agreement to buy Five9, Inc. (NASDAQ: FIVN) – a leading provider of the intelligent cloud contact center – in an all-stock transaction valued at about $14.7 billion. And combining Five9’s Contact Center as a Service (CCaaS) solution with Zoom’s broad communications platform will transform how businesses connect with their customers, building the customer engagement platform of the future.
The deal is expected to help enhance Zoom’s presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24 billion contact center market. Five9 is known as a pioneer of cloud-based contact center software. The company’s highly scalable and secure cloud contact center delivers a comprehensive suite of easy-to-use applications that allows management and optimization of customer interactions across many different channels.
Zoom’s deal to buy Five9 is complementary to the growing popularity of its Zoom Phone offering. Zoom Phone is a cloud phone system that offers a digital alternative to legacy phone offerings, enabling organizations to connect and interact in new and convenient ways to keep businesses moving.
The combination enables both companies significant cross-selling opportunities to each other’s respective customer bases. And as a result of the acquisition, Zoom will play an even greater role in driving the digital future and bringing companies and their customers closer together.
Following the close of the deal, Five9 will be an operating unit of Zoom and Rowan Trollope will become a President of Zoom and continue as CEO of Five9, reporting to Yuan.
Proposed Transaction Details
As part of the deal, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom Video Communications for each share of Five9. And based on the closing share price of Zoom Class A common stock as of July 16, 2021, this represents a per share price for Five9 common stock of $200.28 and the implied transaction value of approximately $14.7 billion.
The Boards of Directors of Zoom and Five9 approved the transaction. And the Board of Directors of Five9 recommends that Five9 stockholders approve the transaction and adopt the merger agreement. The deal — which is anticipated to close in the first half of calendar year 2022 — is subject to approval by Five9 stockholders, the receipt of required regulatory approvals 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. 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.”
— Eric S. Yuan, Chief Executive Officer and Founder of Zoom
“Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers. 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. Joining forces with Zoom will provide Five9’s business customers access to best-of-breed solutions, particularly Zoom Phone, that will enable them to realize more value and deliver real results for their business. This, combined with Zoom’s ‘ease-of use’ philosophy and broad communication portfolio, will truly enable customers to engage via their preferred channel of choice.”
— Rowan Trollope, Chief Executive Officer of Five9