Zoom, the video conferencing software program, announced that it will be buying Five9, a cloud contact service provider.
Zoom became popular due to the pandemic where work from home became a mandatory solution as people couldn’t go to work. This was the time when Zoom made millions of profits due to more and more people downloading it for their school work, office work, etc.
This led to a rise in its stock price and now it is worth $361 USD today. Due to the ongoing profits Zoom decided to buy Five9.
Five9 has been famous for its cloud center services where you can manage your customers from hybrid locations and communicate with them using voice, SMS, chat, email, social, video, and more. It is a 20-year-old company.
Zoom which was valued at $ 9 billion during its IPO launch two years ago now has declared that it will be buying Five9 for $ 14.7 billion in an all-stock- transaction.
This deal signed by both the companies will close next year in 2022 and Five9 will be merged with Zoom after the deal is closed.
Buying Five9 is Zoom’s attempt to make their software more functional and convenient. This will increase their offerings and their demand among the users. Earlier Zoom has included many such updates to increase their offerings in the market. It no provides different
partnership products for offices, all in one home communication appliance, and a cloud phone system.
Zoom will enter the $ 24 billion market if it makes the investment and buys Five9. Eric S. Yuan who is the founder and chief executive of Zoom recently expressed why they wanted to invest in Five9. He explained that such an investment would magnify their portfolio and make it more approachable to the customers. He feels that Five9 is an investment that will fit into Zoom very easily as both share a common niche. This will help them deliver greater services to their customers and make them happier.
When both these firms join they would receive equal opportunities to cross-sell to each other’s customers, said both firms. Rowan Trollope, chief executive of Five9 said, there are many businesses that spend a lot on contact centers but fail to satisfy their customers as they cannot communicate seamlessly with them. This problem is solved by Five9 who has been working on providing top-quality service to its users for the last 20 years.
Joining Zoom is beneficial for Five9 too as their own customers would get other services that Zoom provides with their original services. The customers can enjoy Zoom Phone which will enhance the value of their business as it will help them connect with their customers and provide a more customer-friendly service that has high chances of bribing those customers back. As well as Zoom’s incredible video conferencing tool will allow businesses to connect with ease with their customers and know the problems they are facing or their reviews at a deeper level.
The two firms will be doing a Zoom call on Monday to talk more about the transaction and how they would execute it.