Teleconference service provider Zoom Video Communications has agreed to buy cloud software provider Five9 in an all-stock deal worth about $14.7 billion. The acquisition is a bid to target business clients looking to boost customer engagement, it said on Sunday.
The company is now shifting focus to its 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 (roughly Rs. 1,79,420 crores) contact centre market,” Zoom said in a statement.
The acquisition would complement Zoom Phone service, an alternative to legacy phone offerings, by adding Five9’s business customers and combining its contact centre software to optimise customer interactions across channels, it added.
The company said, 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.
