Zoom Video Communications, Inc. – whose video conferencing service became a staple during the coronavirus pandemic, plans to purchase cloud-based software company Five9 in an all-stock deal valued at $14.7 billion.
|ZM||ZOOM VIDEO COMMUNICATIONS, INC.||367.54||-5.60||-1.50%|
The deal will accelerate Zoom's "long-term growth opportunity" by tapping into the $24 billion contact center market, the San Jose, California company said.
As a result, the company projects that it will be able to "transform how businesses connect with their customers" even as consumers shy away from computer screens and head back to classrooms and office buildings.
Zoom became the norm in day-to-day business for Americans when the pandemic shuttered nearly all in-person interactions for a prolonged period. Now, with the U.S. economy re-emerging from the pandemic and the need for virtual meetings lessening, the company is looking to boost its appeal with clients.
"We are continuously looking for ways to enhance our platform," Zoom CEO Eric Yuan said, adding that Five9, which provides software to customer service centers to thousands of clients worldwide, "is a natural fit."
Although there is uncertainty surrounding Zoom’s prospects in a post-pandemic economy, the company continues to report promising earnings. In fact, Zoom's current market value of roughly $102 billion is far beyond what it was before the World Health Organization declared a global pandemic in March 2020.
The Associated Press contributed to this report.