Zoom (NASDAQ: ZM), an American video-conferencing platform, has reached an agreement to acquire cloud-based software company Five9 for USD14.7 Billion. The company revealed that the move will “help enhance Zoom’s presence with enterprise customers and allow it to accelerate its long-term growth opportunity.”
BofA Global Research analyst Daniel Bartus considers the deal a “game changer” for Zoom, emphasizing his Buy rating and USD480 price target.
Five9 supplies software to customer service centers for over 2,000 clients worldwide. The agreement is set to provide Five9 shareholders with approximately 0.5 a share of Zoom’s Class A common stock for every Five9 share they own.
“Enterprises communicate with their customers primarily through the contact center, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers,” said Eric Yuan, Zoom’s billionaire CEO and founder.
Zoom has been one of the most successful businesses throughout the ongoing Covid-19 pandemic. Two years ago, the company’s market cap was USD16 Billion, a long way from its current value of USD106.7 Billion.
Nevertheless, the company strives to create new avenues of growth as economies start to slowly recover and the use for remote conferencing declines. The company’s recent acquisition has done exactly that, as it allows it to move into a new division: customer service centers. Zoom declared Sunday that it intended to “build the customer engagement platform of the future,” meanwhile anticipating a new journey into a “$24 billion contact center market.”