Zoom is acquiring Five9, an American cloud call company, for $14.7 billion in cash and stock, making it Zoom’s largest investment to date.This is Zoom’s first billion-dollar transaction.
Not only is it Zoom’s largest acquisition, but it is also the US’s second-largest technology transaction, trailing only Microsoft’s planned $16 billion purchase of Nuance Communications.
Five9 will become an operating unit of Zoom once the transaction is completed.Five9 stockholders will receive 0.5533 Zoom shares for every Five9 shares they own.These shares are valued at $200.28 per share, a 13 percent premium, and account for approximately 14 percent of Zoom’s current market cap of $107 billion.
Zoom and Five9 expect that the transaction will be completed in the first half of 2022.
Zoom will gain access to the cloud calling market for the first time as a result of this acquisition.It will also provide Zoom access to over 2,000 Five9 customers, including Citrix, Under Armour, and others.
Eric Yuan, CEO of Zoom, commented on the acquisition, saying:
Following this development, we can also expect Zoom introducing new features next year, though there is little information on this as it is too early for any such details.