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Founded in 2001, Five9 offers a suite of tools to help businesses manage their customers’ inbound communications, covering voice, messaging, email, and more. The Five9 platform also includes CRM integrations, intelligent routing to connect each request to the most suitable agent, and an AI-powered assistant that suggests actions to take next.
Like just about every cloud-focused company in the tech arena, Five9 has been a primary beneficiary of the company’s broader growth. digital transformation throughout the pandemic, its stock value roughly triples in the 12-month period starting in March 2020. And to persuade Five9 shareholders to bite, Zoom is offering around $ 200.28 per share, which which represents a 13% premium on the closing price of Five9 on Friday.
While Zoom is probably best known as that business application that transcended the desktop environment during the pandemic to become the default group video chat tool for millions of people around the world, he also came up with a cloud-based business phone system called Zoom Phone since 2019. And this is where Zoom sees Five9 serving as complementary technology – Zoom is embarking on vertical business communication.
“Businesses communicate with their customers primarily through the contact center, and we believe this acquisition creates a premier customer engagement platform that will help redefine the way businesses of all sizes connect with their customers,” said Zoom’s founder and CEO Eric S. Yuan said in a statement. Press release.
But perhaps more than that, Zoom will be in a strong position to cross-sell and up-sell its various products, so that an existing Five9 customer will be offered Zoom’s line of conferencing and meeting tools. , while Zoom may try to shoehorn its own customers on Five9 as part of a one-stop package deal.
The global cloud contact center market was an industry worth $ 11.5 billion in 2020, although this figure is estimated to more than triple in four years. A quick snapshot of the industry reveals that investors are betting big on this upward trajectory, with Talkdesk last year $ 143 million for a valuation of $ 3 billion, while Aircall last month got $ 120 million at a valuation of $ 1 billion.
Zoom has said he expects the acquisition of Five9 to be finalized in the first half of 2022, although it is, of course, still subject to the approval of Five9 shareholders. Assuming the remaining hurdles are cleared, Five9 will function as a unit inside Zoom, with Five9 CEO Rowan Trollope continuing in his current role while also becoming President of Zoom, reporting directly to Yuan.
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