What Zoom will do with Five9 contact centers
Zoom acquires Five9 for $ 14.7 million. Here because. Facts, numbers and analysis
Zoom seeks to expand beyond video chat.
The videocall platform that experienced a real boom during the pandemic, has entered into a definitive agreement for the acquisition of Five9, a company listed on Nasdaq and active in the field of cloud-based contact centers.
The deal involves an all-stock transaction worth approximately $ 14.7 billion. According to FactSet, it is the second largest US tech deal this year, following Microsoft 's $ 16 billion planned purchase of Nuance Communications.
“We are continually looking for ways to improve our platform and adding Five9 is a natural choice that will bring even more happiness and value to our customers,” said Eric S. Yuan, founder and CEO of Zoom.
Just two years ago, Zoom was valued at nearly $ 16 billion. Since then, its market capitalization has increased to approximately $ 106.7 billion. But while the coronavirus crisis has helped Zoom become popular, the company faces pressure to find new avenues of growth as economies reopen and the need for declines in teleconferencing, CNN comments.
All the details.
DETAILS OF THE OPERATION
In particular, the shareholders of Five9 will receive 0.5533 class A ordinary shares of Zoom for each share of Five9. This represents a Five9 share price of $ 200.28, equivalent to a nearly 13% premium over the closing price on July 16.
THE ZOOM STRATEGY
Five9 supplies software to customer service centers for over 2,000 customers around the world.
Zoom expects the acquisition to help improve its business opportunities with corporate customers and accelerate its long-term growth by adding the contact center market (i.e. the advanced call center that integrates telecommunication capabilities with systems informative) of 24 billion dollars.
"Companies communicate with their customers primarily through the contact center and we believe this acquisition creates a leading customer engagement platform that will help redefine the way businesses of all sizes connect with their customers," he said. Eric Yuan pointed out.
TO FACE THE DIFFICULTY
After increasing its revenue by 326% in 2020, Zoom faces a natural slowdown, especially as companies reopen and resume face-to-face meetings. Although the company has launched new products to cope with upcoming changes in its business, it is now so big that organic growth alone is unlikely to satisfy Wall Street. As CNBC points out, Zoom also needs new sources of revenue as Microsoft increases competition in video chat with Teams.
THE NEW GOVERNANCE
Following the close of the transaction, Five9 will be an operating unit of Zoom and Rowan Trollope (CEO of Five9) will become president of Zoom and continue as CEO of Five9, reporting to Eric Yuan (CEO of Zoom).
THE COMMENT OF THE ANALYSTS
The deal "looks set to expand the company's business offerings and relationships, as well as its total addressable market," Scott Kessler, a Third Bridge analyst, told CNN . “It is worth noting that this would be by far the largest M&A deal ever made by Zoom, perhaps designed to impact from a diversification perspective,” concluded Kessler.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/cosa-fara-zoom-con-i-contact-center-di-five9/ on Mon, 19 Jul 2021 14:21:05 +0000.