Zoom entered an agreement to acquire Five9, a cloud contact center, in an all-stock transaction valued at $14.7 billion. Zoom plans to combine Five9’s contact center as a service (CCaaS) solution with its broad communications capabilities to build a customer engagement platform for the hybrid world.
With access to Five9’s contact center, Zoom aims to enhance its video conferencing platform’s presence with enterprise customers and accelerate its long-term growth opportunities. In turn, both companies are presented with cross-selling opportunities to each other’s customer bases, allowing for future digital growth.
“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 Eric S. Yuan, CEO and Founder of Zoom, in a statement. “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.”
This acquisition is just the latest in Zoom’s series of successes. It became a unicorn in 2017 when it reached a valuation of $1 billion and generated $2.6 billion in revenue throughout 2020. As of now, the company’s valuation exceeds $100 billion.