Zoom to buy cloud software provider Five9 in $15 billion deal.
The teleconferencing services provider has become a household name and investor favorite in the year since the coronavirus pandemic, as businesses and schools adopted its services to hold virtual classes, office meets and socialise.
On Sunday, Zoom Video Communications Inc said that it has agreed to buy cloud software maker Five9 Inc in an all-stock deal valued at around $14.7 billion to target commercial clients wanting to improve customer engagement.
The teleconferencing services provider has become a global superstar and an investor favourite in the year following the coronavirus outbreak, as businesses and schools have used its services to organize virtual lessons, office meetings, and social gatherings.
As significant rivals like Facebook and Alphabet’s Google ramp up their video offerings, the San Jose, California-based start-up is now focusing on its two-year-old cloud-calling product Zoom Phone and conference-hosting product Zoom Rooms.
On Friday, Five9’s stock increased 0.6 per cent to $177.60, while Zoom’s stock rose 1.4 per cent to $361.97, valuing the firm at roughly $106 billion.
According to Gartner, global spending on cloud-based conferencing is expected to reach $5.41 billion next year, up from $5.02 billion in 2020. Although it does not keep track of market share, analysts say Zoom and Cisco are the market leaders.