Zoom is acquiring American cloud call company Five9 for an all-stock deal of $14.7 billion, making it Zoom’s biggest acquisition to date. This is also the very first billion-dollar deal for Zoom.
Not only is it Zoom’s biggest acquisition, but it’s also the United State’s second-biggest tech deal, right behind Microsoft’s planned purchase of Nuance Communications for $16 billion.
Once the deal is closed, Five9 will become an operating unit of Zoom. Five9 stockholders will receive 0.5533 shares of Zoom for every Five9 shares. These shares are valued at $200.28 each, which is a 13% premium and makes up about 14% of Zoom’s market cap, which is $107 billion at the moment.
Both Zoom and Five9 expect the deal to be closed during the first half of 2022.
Following this acquisition, Zoom will have access to the cloud calling market for the first time. It will also give Zoom access to over 2,000 customers of Five9 including firms like Citrix, Under Armour, and more.
Zoom CEO Eric Yuan commented on the acquisition saying:
We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers
After this development, we can also expect Zoom to introduce new features next year, but there is little information on that as it is too early for any such details.