Zoom Video to Acquire Cloud Contact Center Software Provider Five9

Zoom Video announced a deal to acquire Five9 a provider of for contact centers for $14.7 bln in an all-stock transaction. $ZM was down 4% and $FIVN up 4% on the deal. The acquisition puts ZM into the contact center space.


For Zoom Video,  Five9 is an attractive target as it is disrupting a large market by replacing legacy on-premise contact center systems with cloud systems. Zoom can broaden its reach with enterprise customers. 

FIVN’s Virtual Contact Center (VCC) platform enables customers to engage through voice, video, website, mobile, chat, email, click-to-call, callback, social, and messaging features. Furthermore FIVN web analytics provide businesses with insight into what visitors are doing live on their website, in a mobile app, or in interactions with their agents.

FIVN believes that cloud penetration of the contact center market in North America is just at the beginning relatively and growing rapidly. Historically corporations refresh their contact center systems every 8-10 years, offering an opportunity for cloud providers to replace legacy on-premise systems when replacement decisions arise. This has been sped up with the forced technology disruption and boom from the Work From Anywhere explosion brought about by the COVID shutdowns.

Sales boomed during the pandemic with people accessing electronically remotely. With the return to normalcy, at least in varying degrees, people are going back to work and school and have more face-to-face interactions as the pandemic recedes, and as Zoom reflects on booming sales from last year, growth will be less exponential.

Zoom’s growth prospects will be reflected with cloud platform overtaking on-premise legacy platforms. Joining forces with Zoom will provide Five9’s customers access to Zoom’s offerings, particularly its Zoom Phone solution, which should translate well to call center environments.

An important factor is that Zoom Video is effectively cashing in some of that high valuation in an all-stock deal. Zoom is looking forward to an ever evolving world and other revenue streams and is taking adavantage of a once-in-a-lifetime pandemic. Video conferencing does not have a difficult barrier to entry or is proprietary. Competitive include Microsoft (MSFT), which is boosting the video capabilities of its Teams platform among others.

About Zoom

Zoom is for you. We help you express ideas, connect to others, and build toward a future limited only by your imagination. Our frictionless communications platform is the only one that started with video as its foundation, and we have set the standard for innovation ever since. That is why we are an intuitive, scalable, and secure choice for individuals, small businesses, and large enterprises alike. Founded in 2011, Zoom is publicly traded (NASDAQ: ZM) and headquartered in San Jose, California. Visit zoom.com and follow @zoom.

About Five9

Five9 is an industry-leading provider of cloud contact center solutions, bringing the power of cloud innovation to more than 2,000 customers worldwide and facilitating billions of customer engagements annually. The Five9 Intelligent Cloud Contact Center provides digital engagement, analytics, workflow automation, workforce optimization, and practical AI to help customers reimagine their customer experience. Designed to be reliable, secure, compliant, and scalable, the Five9 platform helps increase agent and supervisor productivity, connects the contact center to the business, and ultimately deliver tangible business results including increased revenue and enhanced customer trust and loyalty.

From The TradersCommunity Research Desk

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