(July 19) Five9 rose more than 10% in premarket trading. Zoom to buy cloud sTiger Newspressoftware provider Five9 in $15 billion deal.
Five9 will become an operating unit of Zoom and its chief executive, Rowan Trollope, will become a president of Zoom and stay on as chief of the unit after the deal, which is expected to close in the first half of 2022, it said in a statement.
Under the pact, approved by the boards of both companies, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom for each share of Five9, it added.
Based on the July 16 closing share price of Zoom Class A common stock, this represents a price of $200.28 for each share of Five9 common stock, and an implied deal value of about $14.7 billion.
Zoom has become a household name and investor favorite in the year since the coronavirus pandemic, as businesses and schools adopted its services to hold virtual classes, office meets and socialise.