Home Cloud Computing Zoom buys cloud contact center Five9 for $14.7B

Zoom buys cloud contact center Five9 for $14.7B

57
0

Zoom yesterday announced plans buy cloud call center service provider Five9 in a $14.7 billion all-stock transaction. Subject to shareholder approval, the acquisition is expected to close in the first half of 2022.

The acquisition could allow the to hedge its video bets after 18 months of unprecedented growth as both companies and individual users turned to the videoconferencing platform to stay in touch with co-workers, family, and friends. While the need for videoconferencing is unlikely to go anywhere, even with offices re-opening, Zoom appears to be looking to capitalize on its growing customer base by expanding services.

Steve Blood, a VP Analyst at Gartner, raised questions about the move, noting that Five9 and Zoom operate in completely different markets. He sees a “disconnect” between the two companies and a potentially risky acquisition.

“We recognize that a part of the market that Zoom targets is an IT leader in a mid-size business or smaller that has responsibility for all communication,” Blood said. “In that segment, it is very feasible that there will be a responsibility for buying contact center technology.

“However, when you look at Five9’s business, they focus on a smaller end of the market and a lot of their business is dealing directly with CX leaders who, from our experience, have nothing to do with enterprise collaboration whatsoever.,” Blood said. “That’s where the disconnect is for us.”

Zoom CEO and founder of Zoom Eric Yuan, in a statement, pointed to the push for “hybrid” workplaces, and said Five9 would position Zoom to grow.

Copyright © 2021 IDG Communications, Inc.