Zoom Video Communications Inc (ZM) said over the weekend that it had agreed to acquire cloud-based call center operator Five9 in a $14.7 billion deal, the company’s largest acquisition ever, amid intensifying competition in the video conferencing field.
The Five9 acquisition is expected to complement Zoom Video Communications’ Zoom Phone service through the addition of the call center operator’s business clients, among which are Lululemon and Under Armour.
“The acquisition is expected to help enhance Zoom’s presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24-billion contact center market,” Zoom said in a statement.
Under the terms of the deal, Five9 is to become an operating unit of Zoom, while its Chief Executive Officer, Rowan Trollope, will serve as President of the company. The acquisition is expected to be finalized during the first half of 2022.
The shares of Zoom Video Communications Inc closed lower for the eighth time in the past ten trading sessions on NASDAQ on Monday. It has also been the steepest single-session loss since July 14th. The stock went down 2.15% ($7.77) to $354.20, after touching an intraday low at $343.82. The latter has been a price level not seen since June 10th ($331.59).
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