Zoom Acquires Cloud Call-Center Company Five9 for $14.7 Billion

Zoom is leveraging its last year's impressive growth in its stock price to make its first significant acquisition. Estimated about $9 billion at its IPO two years ago, the leading video conferencing firm agreed to buy cloud call center Five9 at almost $14.7 billion in all-stock transactions.

Five9, a 20-year-old cloud call center, will be an operating unit of Zoom after the deal. This deal is about to close in the first half of 2022.

The projected acquisition is Zoom's latest effort to increase its offerings. Last year, it added several office collaboration tools, a cloud phone system, and an all-in-one home communications application.

According to the company, the acquisition of Five9 will help Zoom enter the "$24 billion" market for contact centers. Five9's annual processing capacity of over 7 billion minutes of calls annually is the driving factor of expanding Zoom's market. Five9 has over 2,000 customers worldwide including Citrix and Under Armour.

Eric S. Yuan, the founder and chief executive of Zoom, stated that "We are continuously looking for opportunities to expand our platform, and the acquisition of Five9 will elevate the happiness and value to our customers."

Further, according to both the firms, the acquisition will offer significant cross-selling opportunities for both the firms in each other's respective customer bases. Rowan Trollope, the chief executive of Five9, says, "Businesses struggle to deliver a seamless experience for their customers, even after spending significant resources annually on their contact centers."

Trollope added, "Five9 has always attempted to make it easy for businesses to fix the problem and enable meaningful and efficient customer engagement. Joining hands with Zoom boosts the eligibility of Five9's business customers to access the best solutions, especially Zoom Phone. This collaboration will enable them to realize more value and deliver real results for their business."

The two companies will jointly make a zoom call to share more about the deal.