On July 19, according to a Reuters report, the online video conferencing company Zoom $Zoom Communications (ZM.US)$reached an agreement on July 18 to acquire cloud services company Five9 for approximately $14.7 billion. The deal is expected to be completed in the first half of 2022.
Afterward, Five9 will become Zoom's operating division, and its CEO Rowan Trollope will become Zoom's president, continuing to manage the division after the transaction is completed.
As of the U.S. stock market close on July 19, the share price of Five9, a provider of intelligent cloud contact center solutions, rose by 5.92% to $188.12. What is Zoom’s intention behind acquiring Five9? In the online office space, what else is driving Zoom’s performance growth?
What makes Five9 attractive enough to gain Zoom's favor?
Five9 is a company that provides cloud-based customer service solutions globally. Over the past five years, Five9 has achieved remarkable growth, with a compound annual growth rate (CAGR) of total revenue at 25%, and 32% in 2020.
Last year, due to the outbreak of the COVID-19 pandemic, many companies were unable to resume work normally. The pandemic accelerated the widespread adoption of cloud-based offices among enterprises. Five9 provides various functions and tools for businesses. As a result, Five9's market share exceeded 6%, ranking just behind Cisco, Salesforce, and Avaya. ...