Zoom Acquires Five9 for $14.7 Billion - Expanding Contact Center Capabilities

Zoom Acquires Five9 in $14.7 Billion Deal

Leveraging a substantial increase in its stock value over the last year, Zoom is making its first significant acquisition. The widely-used video conferencing company, initially valued at approximately $9 billion during its IPO two years prior, announced Sunday an agreement to purchase Five9, a cloud call center service provider, for around $14.7 billion in a fully stock-based transaction.

Deal Details and Timeline

Following the completion of the acquisition, anticipated in the first half of 2022, the 20-year-old Five9 will operate as a division within Zoom. Both companies jointly confirmed these details.

Expanding Zoom's Capabilities

This proposed acquisition represents Zoom’s ongoing strategy to broaden its service offerings. Over the past year, the video conferencing platform has integrated several office collaboration tools, a cloud-based phone system, and a comprehensive home communication device.

Entering the Contact Center Market

The purchase of Five9, which serves over 2,000 clients globally – including Citrix and Under Armour – and handles more than 7 billion call minutes each year, will allow Zoom to penetrate the $24 billion contact center market.

Executive Statements

Eric S. Yuan, founder and CEO of Zoom, stated, “We are consistently seeking opportunities to improve our platform, and integrating Five9 is a logical step that will enhance customer satisfaction and deliver increased value.”

The collaboration is expected to generate considerable cross-selling opportunities within the existing customer bases of both organizations, according to the companies.

Five9's Perspective

Rowan Trollope, CEO of Five9, explained, “Companies invest heavily in their contact centers, yet often struggle to provide a consistently positive customer experience.”

“Five9’s core mission has always been to empower businesses to resolve this issue and connect with customers more effectively. Combining forces with Zoom will grant Five9’s clients access to leading-edge solutions, notably Zoom Phone, enabling them to achieve greater returns and tangible business outcomes.”

Future Communication

A joint conference call between Zoom and Five9 is scheduled for Monday to provide further details regarding the transaction.

Key Benefits of the Acquisition

• Enhanced platform capabilities for Zoom.
• Access to the $24 billion contact center market.
• Cross-selling opportunities for both companies.
• Improved customer experience through integrated solutions.