Zoom buys Five9

19.07.2021. / 9:41

NEW YORK – Video conferencing platform Zoom has announced that it is buying Five9, a cloud contact center software provider, by taking over all of its shares for $ 14.7 billion.

foto: pixabay

This is the first acquisition of Zoom, as part of its preparations for the post-pandemic time when employees return to offices, and the second largest in the American technology sector this year, after Microsoft’s planned purchase of Nuance Communications for 16 billion dollars, according to FaktSet.

The market capitalization of Five9 amounted to 11.9 billion dollars at the closing of the New York Stock Exchange on Friday, or 177.60 dollars per share, CNBC reports.

According to the announcement of Zoom, the shareholders of the company Five9 will receive 0.5533 shares of Zoom Video Communications for each share they own in Five9. This raises the value of Five9 to $ 200.28 per share, a 13 percent premium over Friday’s closing price.

Zoom is among the 16 most successful growing companies in the past 16 months, since the corona pandemic suddenly forced employers around the world to close offices and force employees in various industries to do work from home and do business communication in video format.

After a 326 percent revenue jump last year, Zoom is facing a natural slowdown as companies reopen and meetings are held face-to-face again. Although it has launched new products, counting on the upcoming changes in its business, Zoom is now so large that it is unlikely that its organic growth will satisfy investors on Wall Street, according to CNBC.

It also needs new sources of revenue, as Microsoft is stepping up the market competition with its video chat offerings on the Teams platform.

The price of Zoom’s shares rose by almost 400 percent last year, but it has been falling by 36 percent since October, when it reached its peak.

Source: Capital.ba – Informacija je capital by www.capital.ba.

*The article has been translated based on the content of Capital.ba – Informacija je capital by www.capital.ba. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!

*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.

*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!