Zoom Video Communications Inc announced a $14.7 billion all-stock deal to buy cloud-based call centre operator Five9 Inc in its largest-ever acquisition, as competition intensifies in its core video conferencing sector.
The teleconferencing services provider has become an investor favourite in the year since the coronavirus pandemic, as businesses and schools adopted its services to hold virtual classes, office meets and socialise.
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The San Jose, California-based company is now shifting focus to its two-year-old cloud-calling product Zoom Phone and conference-hosting product Zoom Rooms as bigger players Facebook and Alphabet’s Google amp up their video products.
“The acquisition is expected to help enhance Zoom’s presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24-billion contact centre market,” Zoom said in a statement.