By Dhirendra Tripathi
Investing.com – Zoom Video (NASDAQ:ZM) 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:FIVN).
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.