Last Updated on 19/07/2021 by Sanskriti
With a deal of $14.7 billion in an all-stock transaction, Zoom Video Communications Inc, a teleconferencing services provider, has agreed to purchase cloud software firm Five9 Inc, the company announced on Sunday. When the purchase is complete in the first half of 2022, and Five9 becomes an operational unit of Zoom, CEO Rowan Trollope will become Zoom president and continue to oversee the unit, a statement reads.
According to the deal, which was approved by the boards of both companies, investors in Five9 would get 0.5533 shares of Zoom’s Class A common stock for each share of Five9.
Per-share of Five9 common stock would cost $200.28, implying a transaction value of roughly $14.7 billion, based on the ending share price of Zoom Class A common stock on July 16.
Zoom has become a household name and an investor darling in the year since the coronavirus outbreak, as corporations and schools have utilized its services to organize virtual courses, working meetings, and social events. With the rapid vaccination and return to normalcy, analysts and investors are looking to see how Zoom will keep up with competitors like Alphabet Inc’s Google, Microsoft Corp, and Cisco Systems Inc while maintaining its growth.