Unless you have been living under a rock, Zoom Video Communications (NASDAQ: ZM) should be a familiar name.
Chances are, you would have used the company’s video-conferencing services while telecommuting.
Demand for video-conferencing tools skyrocketed in 2020 due to the COVID-19 pandemic, and Zoom was the biggest beneficiary of that trend, establishing itself as the default choice for video calls.
But the company is ambitious and is planning for more growth.
Zoom recently announced a massive multi-billion dollar acquisition.
Here are some highlights that investors should know.
The acquisition
Zoom will be purchasing Five9 (NASDAQ: FINV), a leading provider of cloud contact centre software in an all-stock transaction valued at around US$14.7 billion.
Under the proposed plan, Five9 shareholders will receive 0.5533 shares of Zoom for each Five9 share owned, with the acquisition poised to be completed in the first half of 2022.
At the time of writing, Zoom’s share price is US$359.23,...