Zoom to Buy Five9 in All-Stock Deal Valued at $14.7 Billion
July 18 2021 - 9:58PM
Dow Jones News
By P.R. Venkat
Zoom Video Communications Inc. is planning to buy Five9 Inc. in
an all-stock deal that values the provider of cloud contact center
solutions at about $14.7 billion.
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 Monday.
Zoom, which started trading in the public markets in 2019, has
been one of the biggest beneficiaries from the shift to remote work
and distance schooling.
Its first quarter revenue surged 191% year-over-year to about
$956 million, beating the company's own projection and Wall
Street's consensus estimate of $905 million.
As part of the agreement, Five9 stockholders will receive 0.5533
shares of Class A common stock of Zoom for each share of Five9.
"Joining forces with Zoom will provide Five9's business
customers access to best-of-breed solutions, particularly Zoom
Phone, that will enable them to realize more value and deliver real
results for their business," Rowan Trollope the Chief Executive
Officer of Five9 said.
The transaction, which is anticipated to close in the first half
of calendar year 2022, is subject to approval by Five9
stockholders, the receipt of required regulatory approvals and
other customary closing conditions.
Once the transaction closes, Five9 will be an operating unit of
Zoom and Rowan Trollope will become a president of Zoom and
continue as CEO, reporting to Eric Yuan, the founder and CEO of
Zoom.
Goldman Sachs is acting as the exclusive financial advisor to
Zoom and Qatalyst Partners is the financial advisor to Five9.
Write to P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
July 18, 2021 21:46 ET (01:46 GMT)
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