After experience huge growth during the COVID-19 pandemic, Zoom made its first major acquisition by buying cloud contact company Five9 for $ 14.7 billion announced. The move will allow Zoom to expand to call center technology worth up to $ 24 billion, diversifying its products once employees begin returning to the office after a pandemic.
Five9 will become the operational unit of Zoom when the deal is completed, probably in the first half of 2022. “We are constantly looking for ways to improve our platform, and the Five9 add-on is naturally convenient as it will provide even more … value to our customers,” said Zoom CEO Eric Yuan in statement.
Five9 is a 20-year-old firm with 2,000 customers worldwide, including SalesForce and Under Armor, that handles over 7 billion call minutes a year. Zoom notes that it has already been a “long-term” customer of Five9 and said the partnership will allow Five9’s business customers access to Zoom products such as multi-platforms. Zoom in on the phone application.
The purchase will not have much of an impact on consumers, as Five9 is mostly a business company. However, the recent growth of Zoom was partly driven by employees who had to work and communicate from home due to the pandemic. When the crisis subsides, the contact center business in Five9 will provide a new revenue stream.
Although most of its products are focused on companies, Zoom has also embraced the consumer side of things. Last year, the company announced a new product category called Zoom in for home, with software and a range of hardware devices. Although these products are aimed at employees who work from home, consumers can also use them in search of a reliable video calling system.
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