Zoom said it plans to buy cloud software provider Five9 in an all-stock deal valued at about $14.7 billion
Zoom Video Communications Inc. said it is planning to buy Five9 Inc. in an all-stock deal that values the cloud software provider at about $14.7 billion.
San Francisco, Calif.-based Zoom said the acquisition would help enhance its presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding what the company said is a $24 billion contact-center market. Nasdaq-listed Zoom has been one of the biggest beneficiaries from the shift to remote work and distance schooling during the coronavirus pandemic. Its revenue in the three months to April 30 surged 191% from a year ago to about $956 million. Its shares have multiplied in value since last year, giving Zoom a market capitalization of $106.7 billion, according to FactSet.
Five9, a 20-year-old company based in San Ramon, Calif., is also listed on the Nasdaq Stock Market. It had a market capitalization of $11.9 billion as of Friday. The company provides cloud software for contact centers that are used by businesses. As part of the deal with Zoom, Five9 stockholders will receive 0.5533 shares of Zoom’s Class A common stock for each Five9 share they own. That translates into a $200.28 per-share price for Five9, which reflects a 12.7% premium over their closing price of $177.60 on July 16.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Central Park’ Songwriters Talk Crafting Broadway-Style Showstoppers Via Zoom for Animated Hit Series“Central Park” creator Josh Gad actually called the election results early during a Zoom call with the show’s composers Kate Anderson and Elyssa Samsel. “I’ll never forget that be…
Read more »
L Catterton Takes Control of EtroThe private equity giant is buying 60 percent of Italian fashion group Etro in a deal valued at 500 million euros.
Read more »
This New Electric Scooter Is Great. But Don’t Buy It Yet.This is maybe the best-value e-scooter you cannot buy. At least not yet.
Read more »
Japan's Nikkei 225 falls 1% as Asia-Pacific stocks slip; OPEC and allies reach dealOPEC and its allies reached a deal on Sunday to phase out 5.8 million barrels per day of oil production cuts by September 2022.
Read more »
Partners Group agrees to buy 75% of Italy's EOLOSwiss-based investment firm Partners Group (PGHN.S) has reached a deal to buy a 75% stake in Italy's broadband and wireless communications group EOLO, the Italian company said on Saturday.
Read more »
America’s elite law firms are boomingLockdowns have introduced fresh legal wrinkles: Does an infectious disease count as force majeure? How to conduct due diligence on a deal by Zoom?
Read more »