Teleconferencing services provider Zoom Video Communications has struck a deal to buy cloud software provider Five9 Inc in an all-stock transaction valued at about US$14.7 billion, the company said on Sunday (Jul 18).
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 US$200.28 for each share of Five9 common stock, and an implied deal value of about US$14.7 billion.
Zoom has become a household name and investor favorite in the year since the coronavirus pandemic, as businesses and schools adopted its services to hold virtual classes, office meets and socialise.