Zoom buys cloud company Five9 for nearly $ 15 billion

Video call application Zoom has had a huge increase in users due to last year’s coronavirus pandemic. Due to movement restrictions, most of them had to work or study from home. Zoom now wants to strengthen its market position with its largest acquisition to date. According to the portal CNBC buys a cloud company Five9 for $ 14.7 billion.

Thanks to the acquisition, Zoom will reach corporate customers of other companies

Zoom became a well-known company last year as companies and schools began to make extensive use of its services to organize virtual lessons, office meetings and social events. According to Gartner, even global spending on cloud conferencing will rise to $ 5.41 billion this year from $ 5.02 billion last year. According to analysts, Cisco and the just mentioned Zoom are the market leaders in this market.

As larger market players such as Facebook and Google strengthen their products, the company recently decided on massive investments and acquisitions. Zoom said the new acquisition will support its position with corporate customers and is a great opportunity for its further growth as it enters the call center market.

Five9, which has been on the market for 20 years, will become part of Zoom, along with its call center and cloud telephony software. Current Five9 clients include the American corporation Citrix, lululemon, Athletica, Olympus and Under Armor. There are 7 billion minutes of calls a year through her services.

The acquisition is to take the form of an exchange of shares

The acquisition will take the form of an exchange of shares. Under the agreement, Five9 shareholders will receive 0.5533 Zoom shares for each share. Based on the closing share price of July 16, this should correspond to $ 200.28 per Five9 share, representing a gain of almost 13 percent. The agreement has already been approved by the board of directors of both companies. The acquisition will take effect in the first half of next year.

Zoom entered the stock market as early as 2019. Over the past year, the company’s stock has strengthened by 45% as its conference platforms have seen strong growth in response to the pandemic, which has caused a sharp shift to work, teaching and social contacts over the Internet. The company’s market capitalization is now about $ 106 billion.