Zoom has announced that it is spending $14.7 billion to acquire a company called Five9, which provides cloud contact centre software.
The all-stock transaction is the first billion-dollar takeover for Zoom and the second-biggest tech deal of the year, following Microsoft’s $19.7 billion acquisition of Nuance Communications.
Five9, much like Zoom, is another pandemic success story. The firm has seen rapid growth since early-2020 as demand increased for call centre technology that allowed people to do their jobs from home. The company’s business model is known as a ‘contact centre as a service’, or ‘CCaaS’, with the firm considered a pioneer in the field. It offers a “comprehensive” suite of easy-to-use applications that allow management and optimisation of customer interactions across different channels.
Zoom will combine the service with its communications platform and offer it as a way for businesses to connect with their customers as an engagement platform of the future. The video conferencing giant hopes the acquisition will enhance its presence with enterprise customers and allow it to accelerate its long-term growth by entering the contact centre market, which is thought to be worth around $24 billion.
“We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers,” said Zoom CEO, Eric S. Yuan. “Zoom is built on a core belief that robust and reliable communications technology enables interactions that build greater empathy and trust, and we believe that holds particularly true for customer engagement.
“Enterprises communicate with their customers primarily through the contact centre, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers. We are thrilled to join forces with the Five9 team, and I look forward to welcoming them to the Zoom family.”
The deal is expected to close in the first half of 2022, the two firms said.