By P.R. Venkat
Zoom Video Communications Inc. is planning to buy Five9 Inc. in an all-stock deal that values the provider of cloud contact center solutions at about $14.7 billion.
The acquisition is expected to help enhance Zoom's presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24 billion contact center market, Zoom said Monday.
Zoom, which started trading in the public markets in 2019, has been one of the biggest beneficiaries from the shift to remote work and distance schooling.
Its first quarter revenue surged 191% year-over-year to about $956 million, beating the company's own projection and Wall Street's consensus estimate of $905 million.
As part of the agreement, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom for each share of Five9.
"Joining forces with Zoom will provide Five9's business customers access to best-of-breed solutions, particularly Zoom Phone, that will enable them to realize more value and deliver real results for their business," Rowan Trollope the Chief Executive Officer of Five9 said.
The transaction, which is anticipated to close in the first half of calendar year 2022, is subject to approval by Five9 stockholders, the receipt of required regulatory approvals and other customary closing conditions.
Once the transaction closes, Five9 will be an operating unit of Zoom and Rowan Trollope will become a president of Zoom and continue as CEO, reporting to Eric Yuan, the founder and CEO of Zoom.
Goldman Sachs is acting as the exclusive financial advisor to Zoom and Qatalyst Partners is the financial advisor to Five9.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
07-18-21 2146ET
