Zoom Video Communications Inc., the video conferencing service that became a household name globally during the pandemic, plans to parlay some of the resulting rise in its share price into a $14.7 billion acquisition to secure growth.
The all-stock deal for Five9 Inc., a provider of cloud-based customer-service software, will help Zoom expand its potential offerings for business and enterprise clients. The growth opportunity will allow Zoom to tap into a $24 billion contact-center market, the company said Sunday.
Zoom, which started trading in the public markets in 2019, has been one of the biggest beneficiaries of the shift to remote work and distance schooling. The value of the company’s shares has more than tripled since widespread lockdowns took hold in the U.S. and elsewhere more than a year ago.
Zoom in recent months has stepped up efforts to ensure it can continue growing even once the effects of the pandemic wane and people return to the office and shift to hybrid work.
“The trend towards a hybrid workforce has accelerated over the last year, advancing contact centers’ shift to the cloud and increasing demand by customers for customized and personalized experiences,” Zoom Chief Executive Eric Yuan said in a blog post announcing the transaction.
