Zoom said on Sunday it had entered into a definitive agreement to purchase call centre software maker Five9 in an all-stock deal worth $14.7 billion.
“Enterprises communicate with their customers primarily through the contact centre, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers,” Zoom CEO Eric Yuan said.
Once the transaction is closed, Five9 would become an operating unit of Zoom, with Five9 CEO Rowan Trollope to become a president of Zoom, as well as remain in his current position while reporting to Yuan.
Each share of Five9 will be converted into 0.5533 shares in Zoom, and the deal is expected to close in the first half of 2022.
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“Businesses spend significant resources annually on their contact centres, but still struggle to deliver a seamless experience for their customers,” Trollope said.
“Joining forces with Zoom will provide Five9’s business customers access to best-of-breed solutions, particularly Zoom Phone, that will enable them to realise 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.”
Over the past year, Five9 stock has risen from around $120 a share to top at $198 in February, and is currently around the $177 mark.
In its first quarter earnings released at the end of April, Five9 reported revenue increased 45% to $138 million, and adjusted earnings before interest, tax, depreciation, and amortisation of $22.2 million. It reported a GAAP net loss of $12.3 million and non-GAAP profit of $16.1 million.
Last month, Zoom reported 191% revenue increase to $956 million for its first quarter, and GAAP net income of $227 million, up $27 million.