Zoom Video Communications announced it has entered into an agreement to acquire Five9, a provider of intelligent cloud contact center services, in an all-stock transaction valued at approximately $14.7 billion.
In a press release, Zoom said it hopes to be able to build “the customer engagement platform of the future” by combining Five9’s Contact Center as a Service solution with its broad communications platform.
In a blog post, Zoom CEO and founder Eric S. Yuan said Zoom expects the acquisition will enhance its presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the contact center market, worth an estimated $24 billion.
Five9 is a pioneer of cloud-based contact center software. Its scalable and secure cloud contact center delivers a comprehensive suite of applications that allows management and optimization of customer interactions across many different channels.
“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,” added 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 center, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers.”
“Businesses spend significant resources annually on their contact centers, but still struggle to deliver a seamless experience for their customers,” said Rowan Trollope, chief executive officer of Five9. “It has always been Five9’s mission to make it easy for businesses to fix that problem and engage with their customers in a more meaningful and efficient way. 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. This, combined with Zoom’s ‘ease-of use’ philosophy and broad communication portfolio, will truly enable customers to engage via their preferred channel of choice.”
According to Yuan, Zoom’s acquisition of Five9 is complementary to the growing popularity of its Zoom Phone offering. Zoom Phone is a cloud phone system that offers a digital alternative to legacy phone offerings, enabling organizations to connect and interact in new and convenient ways to keep businesses moving.
The combination also offers both companies significant cross-selling opportunities to each other’s respective customer bases. As a result of the acquisition,
Following the close of the transaction, Five9 will be an operating unit of Zoom and Rowan Trollope will become a president of Zoom and continue as CEO of Five9, reporting to Yuan.
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