By Robb M. Stewart
Zoom Video Communications Inc. shares fell early Monday and Five9 Inc.'s rose after the videoconferencing service announced a $14.7 billion all-stock deal to buy the provider of cloud-based customer-service software.
In premarket trading, Zoom was down 2.2% after ending Friday at $361.97, while Five9 was up 8.4% after last closing at $177.60. Zoom's shares have risen 7.3% since the end of last year, while Five9's have picked up 1.8%.
Under the agreement, Five9 stockholders will receive 0.5533 shares of class A common stock of Zoom for each share of Five9.
San Francisco-based Zoom said the acquisition would help it tap into a $24 billion contact-center market and support its Zoom Phone business, which replaces office telephone systems with a cloud-based service.
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(END) Dow Jones Newswires