Five9 provides software to customer service centers for over 2,000 clients around the globe.
Eric Yuan, Zoom’s billionaire CEO and founder, said the addition of Five9 was a natural fit.
“Enterprises communicate with their customers primarily through the contact center, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers,” he said in a statement.
Scott Kessler, an analyst who leads technology, media and telecommunications coverage for Third Bridge, said the deal “seems intended to expand the company’s enterprise offerings and relationships, as well as its total addressable market.”
“It’s worth noting this would be by far Zoom’s largest ever M&A deal … perhaps designed to make an impact from a diversification perspective,” Kessler told CNN Business.
But while the coronavirus crisis has helped Zoom become a household name, the company faces pressure to find new avenues of growth as economies reopen and the need for remote conferencing dips.
Even with its breakneck success, analysts say that Zoom will eventually also need to add new features to encourage more people to pay for its services.
The two firms will hold a Zoom call Monday to share more details of the deal.
— Samantha Murphy Kelly contributed to this report.