Zoom Video Communications has agreed to acquire call center operator Five9. The $ 14.7 billion deal is the largest in Zoom history.
Zoom will use its growing shares to pay for the deal, providing Five9 investors with 0.5533 of its Class A common share. Following the takeover, Five9 will become Zoom’s operating arm. The deal still needs to be approved by the shareholders of both companies and go through the rest of the steps of the usual procedure in such cases. Its completion is expected in the first half of 2022.
The acquisition will help enter the $ 24 billion call center market and better compete with companies such as RingCentral, Zoom said. As a result of the transaction, the Zoom Phone cloud service will be formed.
Zoom’s video conferencing service has gained prominence in the face of the pandemic, as people forced to stay home due to quarantine used it to work remotely, study, and communicate with family and friends. But this year, Zoom investors have expressed doubts that growth will continue after vaccinations and restrictions are lifted.