Zoom Falls After $14.7 Billion Deal To Buy 5Nine




By Dhirendra Tripathi

Investing.com – Zoom Video (NASDAQ:) stock fell more than 3% in Monday’s premarket trade a day after the company announced an all-stock deal to buy Cloud-based customer-service software provider Five9 (NASDAQ:).  

The acquisition is expected to enhance Zoom’s presence with enterprise customers and help the video chat service target the $24 billion contact center market.

Five9 is a pioneer of cloud-based contact center software. Its Cloud contact center offers applications that allow management of customer interactions across many channels.

The acquisition is complementary to the growing popularity of Zoom’s Cloud-based phone system that offers a digital alternative to traditional phone systems in offices, the company said.

As part of the agreement, Five9 stockholders will receive 0.55 shares of Zoom for each share of Five9, Inc. This represents a per share price for Five9 stock of $200.28.

5Nine stock closed at $177.60 Friday and was trading 7.4% higher in premarket today.

This is Zoom’s second acquisition in less than three weeks. On June 29, it said it was buying Germany’s Karlsruhe Information Technology Solutions, a start-up developing real-time machine translation solutions.

Zoom is amongst the biggest stars born out of the pandemic, when most work moved home and its simple interface and mostly-free real-time video conferencing facility rapidly gained millions of homebound users.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

See also  U.S. President Trump does not want to do business with China's Huawei

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here