- Five9 soared as much as 15% early Monday following a deal to be acquired by Zoom Video Communications.
- Zoom shares were lower after announcing the $US14.7 ($AU20) billion all-stock transaction.
- Zoom’s deal will serve as its entry into the $US24 ($AU33) billion call center market.
- See more stories on Insider’s business page.
Shares of Five9 jumped as much as 15% on Monday on a deal by Zoom Video Communications to buy the cloud-based call center software maker in an all-stock transaction valued at $US14.7 ($AU20) billion, building on Zoom’s business which has boomed during the coronavirus pandemic.
Zoom in a joint statement said the deal will be its entry into the $US24 ($AU33) billion contact center market and will boost its presence with enterprise customers. Five9 has more than 2,000 customers worldwide and it said it facilitates billions of customer engagements each year. Five9 stockholders will receive 0.5533 Class A shares of Zoom for each share of Five9 they own.
Five9 climbed 7.8% after stepping up by 15% to $US196.99 ($AU267) in premarket trading. Shares of the company, which went public in April 2014, were on course to trade at all-time highs. The stock has risen by about 50% over the past 12 months.
Meanwhile, Zoom stock was down 2% early Monday but has picked up 35% over the last year alongside its leap in business as millions of people worldwide took up videoconferencing for work and studying remotely because of the COVID-19 health crisis. The company, based in San Jose, California, in March posted a 326% spike in revenue to $US2.65 ($AU4) billion.
“Enterprises communicate with their customers primarily through the contact center, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers,” Eric Yuan, Zoom’s founder and CEO, said in a statement.
Zoom and Five9 expect the deal to close in the first half of 2022, subject to approval by Five9’s shareholders, among other conditions.