Zoom Buys Five9 for $14.7BN |
| Credit: BW Businessworld |
What Happened?
• Zoom Video Communications, the video conferencing start-up whose services became globally popular during the coronavirus pandemic, has agreed a deal to buy cloud software provider Five9 for about $14.7bn in its first major acquisition.
Deal Information
• Five9 closed on Friday with a market cap of $11.9 billion, or $177.60 a share. Zoom said Five9 stockholders will receive 0.5533 shares of Zoom Video Communications for every Five9 share. That values Five9 at $200.28 a share, a 13% premium, and represents about 14% of Zoom's market cap of close to $107 billion.
What was the Need?
• Naturally as situations improve, people will start shifting to in-person work environment, a situation which majorly impacts Zoom's revenue streams and thus it became essential for the company to widen their business streams.
• Five9's software is used by a number of companies that Zoom is seeking to displace, including Microsoft Teams and Salesforce.
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