(WSJ) Zoom Video Communications Inc. is riding on its pandemic boom with a $14.7 billion all-stock acquisition of cloud service provider Five9 Inc.
Zoom expects to expand its offerings for enterprise and business clients and tap into the $24 billion contact-center market in the acquisition.
Zoom will bank on the acquisition to sustain growth even as the pandemic eases and people return to office or adjust to hybrid work.
Remote working and distance schooling during the pandemic helped Zoom’s stock to more than triple.
Five9 shareholders will receive 0.5533 Class A common stock of Zoom for each share of Five9 Inc.
The deal is pending approval by Five9 shareholders and is anticipated to close in the first half of 2022.
Once completed, the deal will be the biggest acquisition by Zoom and Five9 will become an operating unit of the videoconferencing company.
ZM: NASDAQ is down -0.27% on premarket, FIVN: NASDAQ is up +10.36% on premarket
