Here's why Zoom spent $14.7B to acquire Five9

Zoom Video Communications Inc. (NASDAQ: ZM) has signed a definitive agreement to buy leading intelligent cloud contact center provider, Five9 Inc., in an all-stock deal valued at around $14.7 billion. Combining Zoom's communication platform with Five9's Contact Centre as a Service solution will change how the business links with customers by creating a consumer engagement platform for the future.

Zoom eyeing a $24B market

The deal will be Zoom’s first major acquisition and comes when the company is preparing for a post-pandemic environment as employees return to work. This is the second-largest US tech transaction behind Microsoft Corp's (NASDAQ: MSFT) proposed $16 billion Nuance Communications acquisition.

Five9’s acquisition will help Zoom enhance its presence among enterprise clients and enable acceleration of its long-term growth potential with the addition of the $24B contact Centre market. It's vital to note that Five9 is a cloud-based contact center software pioneer. Its solution is secure and highly scalable, delivering an extensive suite of easy-to-use applications allowing management and customer interactions optimization in various channels. Zoom CEO and founder Eric Yuan said:

Five9 to operate as a division of Zoom

The business combination offers both companies substantial cross-selling opportunities to their respective client bases. Following the acquisition, Zoom will be vital in bringing customers and companies closers and defining the digital future. Five9 will be operating as a division of Zoom, and its current CEO, Rowan Trollope, will continue in the role and become Zoom President. Trollope said: