Leading video conference platform Zoom said Sunday it is purchasing Five9 for $14.7 billion. File Photo by Stefani Reynolds/UPI | License Photo
July 19 (UPI) -- The video-conferencing platform Zoom said it will purchase the cloud-based software company Five9 for $14.7 billion in an all-stock deal.
Zoom has become ubiquitous with virtually all gatherings -- from family get-togethers to large-scale conventions -- during the coronavirus pandemic. Five9 provides software to customer service centers for more than 2,000 clients.
"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," Eric S. Yuan, Zoom's founder said in a statement Sunday.
"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," Yuan said.
Zoom said the purchase will boost its emerging Zoom Phone offering, which is a cloud phone system that enabling organizations to connect and interact in expanded ways.
"Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers," Rowan Trollope, CEO of Five9 said in a statement.
"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."
The deal marks another point in Zoom's rapid rise. Before the COVID-19 pandemic, Zoom was valued at $16 billion, but its market cap has now reached $106.7 billion.
Scott Kessler, an analyst with Third Bridge, said Zoom appears to be diversifying ahead of the video-conference market cooling off.
"It's worth noting this would be by far Zoom's largest-ever M&A deal, perhaps designed to make an impact from a diversification perspective," Kessler told CNN Business.