Jul 18, 2021 - Economy

Zoom buying Five9 in all-stock deal valued at $14.7 billion

Confetti falls as Zoom founder Eric Yuan rings the Nasdaq opening bell on April 18, 2019 in New York City.

Zoom founder Eric Yuan (C) and his team in New York City in 2019. Photo: Kena Betancur/Getty Images

Zoom announced Sunday it has signed an agreement to acquire cloud contact center software provider Five9 in an all-stock transaction valuing the company at $14.7 billion.

Why it matters: This is Zoom's first billion-dollar acquisition and the second-biggest American tech deal this year, after Microsoft's planned $16 billion purchase of Nuance Communications, per CNBC.

Our thought bubble, via Axios' Felix Salmon: In a sign of how good the public markets and the pandemic have been to Zoom, the acquisition price is about 60% greater than the $9.2 billion that the videoconferencing app was valued at in its 2019 IPO.

What they're saying: "We are continuously looking for ways to enhance our platform, and the addition of Five9 is a natural fit that will deliver even more happiness and value to our customers," Zoom CEO Eric Yuan said in a statement.

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