Zoom to buy cloud software provider Five9 in $15 bln deal
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Wednesday
July 06, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
WEDNESDAY, JULY 06, 2022
Zoom to buy cloud software provider Five9 in $15 bln deal

World+Biz

Reuters
19 July, 2021, 09:05 am
Last modified: 19 July, 2021, 09:05 am

Related News

  • Our new cloud-based ruling class
  • Boss behind mass Zoom firing back in charge
  • Zoom has joined tech industry counterterrorism group
  • Better.com CEO apologizes after laying off 900 employees via Zoom call
  • Mortgage company CEO fires 900 employees on Zoom call

Zoom to buy cloud software provider Five9 in $15 bln deal

Five9 will become an operating unit of Zoom and its chief executive, Rowan Trollope, will become a president of the company

Reuters
19 July, 2021, 09:05 am
Last modified: 19 July, 2021, 09:05 am
Photo: Reuters
Photo: Reuters

 Zoom Video Communications Inc has agreed to buy cloud software provider Five9 Inc in an all-stock deal worth about $14.7 billion to target business clients looking to boost customer engagement, it said on Sunday.

The teleconferencing services provider has become a household name and investor favorite in the year since the coronavirus pandemic, as businesses and schools adopted its services to hold virtual classes, office meets and socialise.

The San Jose, California-based company is now shifting focus to its two-year-old cloud-calling product Zoom Phone and conference-hosting product Zoom Rooms as bigger players Facebook and Alphabet's Google amp up their video products.

"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 in a statement.

The acquisition will complement Zoom Phone service, an alternative to legacy phone offerings, by adding Five9's business customers and combining its contact centre software to optimize customer interactions across channels, it added.

Five9 will become an operating unit of Zoom and its chief executive, Rowan Trollope, will become a president of the company, staying on as chief of the unit after the deal, which is expected to close in the first half of 2022, it said.

Under the pact, approved by the boards of both companies, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom for each share of Five9, it added.

Based on the July 16 closing share price of Zoom Class A common stock, this represents a price of $200.28 for each share of Five9 common stock, and an implied deal value of about $14.7 billion.

Shares in Five9 finished up 0.6% at $177.60 on Friday, while Zoom rose 1.4% at $361.97, valuing the company at around $106 billion.

Zoom rose 45% over the past year, as conferencing platforms, which also include Cisco Systems Inc's Webex and Microsoft Teams, have seen a surge in usage due to the coronavirus pandemic that has spurred a seismic shift to online working, learning and socializing.

Global spending on cloud-based conferencing is forecast to reach $5.41 billion this year, up from $5.02 billion in 2020, according to tech consultancy Gartner. It does not track market share, but analysts cite Zoom and Cisco as the leaders.

Top News

Zoom / cloud

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • China-led trade bloc holds promise, with some caveats
    China-led trade bloc holds promise, with some caveats
  • British Prime Minister Boris Johnson speaks at the start of a cabinet meeting in Downing Street in London, Britain July 5, 2022. Justin Tallis/Pool via REUTERS
    UK's Boris Johnson on the brink as ministers quit
  • Representational Image. Photo: Pixabay
    Load shedding the best course of action for now: Experts

MOST VIEWED

  • South Korean President Yoon Suk-yeol speaks during a joint news conference with U.S. President Joe Biden at the presidential office in Seoul, South Korea, May 21, 2022. Jeon Heon-Kyun/Pool via REUTERS/Files
    S Korea's Yoon warns of stern retaliation in case of N Korea's provocation
  • Russian Foreign Minister Sergei Lavrov attends a joint news conference with Venezuelan Foreign Minister Carlos Faria in Moscow, Russia July 4, 2022. REUTERS/Evgenia Novozhenina/Pool/Files
    Russia's Lavrov calls for efforts to protect international laws
  • US Secretary of State Antony Blinken speaks during a briefing at the State Department in Washington, US, January 26, 2022. Photo :Reuters
    Blinken to seek G20 pressure on Russia to open sea lanes, warn China on Ukraine
  • The Bryan Mound Strategic Petroleum Reserve, an oil storage facility, is seen in this aerial photograph over Freeport, Texas, US, April 27, 2020. REUTERS/Adrees Latif
    Oil from US reserves sent overseas as gasoline prices stay high
  • A medical staff in protective suit works at a nucleic acid testing laboratory of Nanjing First Hospital following a citywide mass testing for the coronavirus disease (COVID-19) in Nanjing, Jiangsu province, China July 24, 2021. cnsphoto via REUTERS/File Photo
    Covid and bust: China's private health system hurt by tough coronavirus controls
  • British Prime Minister Boris Johnson speaks at the start of a cabinet meeting in Downing Street in London, Britain July 5, 2022. Justin Tallis/Pool via REUTERS
    UK's Boris Johnson on the brink as ministers quit

Related News

  • Our new cloud-based ruling class
  • Boss behind mass Zoom firing back in charge
  • Zoom has joined tech industry counterterrorism group
  • Better.com CEO apologizes after laying off 900 employees via Zoom call
  • Mortgage company CEO fires 900 employees on Zoom call

Features

The OPEC+ group of 23 oil-exporting countries met virtually on Thursday. Photo: Bloomberg

OPEC+ did its job, but don’t expect it to disappear

21h | Panorama
Mirza Abdul Kader Sardar with AK Fazlul Haque, Chief Minister of Bengal, at Haque's reception at the Lion Cinema, Dhaka, 1941. Photo: Collected

Panchayats: Where tradition clings to survival

22h | Panorama
Illustration: TBS

Universal Pension Scheme: Has it been thought through?

23h | Panorama
Last month Swapan Kumar Biswas, the acting principal of Mirzapur United College, was forced to wear a garland of shoes for ‘hurting religious sentiments.’ Photo: Collected

Where do teachers rank in our society?

1d | Panorama

More Videos from TBS

Sheikh Kamal Business Incubator to be inaugurated at CUET Wednesday

Sheikh Kamal Business Incubator to be inaugurated at CUET Wednesday

12h | Videos
Tejgaon becoming uninhabitable for illegal rickshaw garages, truck stands

Tejgaon becoming uninhabitable for illegal rickshaw garages, truck stands

12h | Videos
50 companies plan to invest big in South

50 companies plan to invest big in South

14h | Videos
Alal, Dulal sell for Tk30 lakh

Alal, Dulal sell for Tk30 lakh

14h | Videos

Most Read

1
Photo: Collected
Africa

Uganda discovers gold deposits worth 12 trillion USD

2
TBS Illustration
Education

Universities may launch online classes again after Eid

3
Meet the man behind 'Azke amar mon balo nei'
Splash

Meet the man behind 'Azke amar mon balo nei'

4
Build Dhaka East-West Elevated Expressway, relocate kitchen markets: PM
Bangladesh

Build Dhaka East-West Elevated Expressway, relocate kitchen markets: PM

5
File Photo: BSS
Energy

India pulls out of LoC funding for part of Rooppur power transmission work

6
Illustration: TBS
Interviews

‘No Bangladeshi company has the business model for exporting agricultural product’

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab
BENEATH THE SURFACE
A customer checks a knife at a blacksmith’s shop at the capital’s Karwan Bazar. Knives and other Qurbani tools are in huge demand as the country prepares to celebrate Eid-Ul-Azha. Photo: Rajib Dhar

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net