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Zoom to buy cloud software provider Five9 in $15b deal

19 Jul 2021 09:17:46 | Update: 19 Jul 2021 09:17:46
Zoom to buy cloud software provider Five9 in $15b deal
Small toy figures are seen in front of Zoom logo in this illustration picture taken March 15, 2021. — Reuters Photo

Teleconferencing services provider Zoom Video Communications Inc has struck a deal to buy cloud software provider Five9 Inc in an all-stock transaction valued at about $14.7 billion, the company said on Sunday.

Five9 will become an operating unit of Zoom and its chief executive, Rowan Trollope, will become a president of Zoom and stay on as chief of the unit after the deal, which is expected to close in the first half of 2022, it said in a statement.

Under the pact, approved by the boards of both companies, Five9 stockholders will receive 0.5533 shares of class A common stock of Zoom for each share of Five9, it added.

Based on the July 16 closing share price of Zoom class A common stock, this represents a price of $200.28 for each share of Five9 common stock, and an implied deal value of about $14.7 billion.

Zoom has become a household name and investor favourite in the year since the coronavirus pandemic, as businesses and schools adopted its services to hold virtual classes, office meets and socialise.