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Zoom Video (NASDAQ:ZM) Chief Financial Officer Kelly Steckelberg said that the company is not restarting talks with Five9 Inc. (NASDAQ:FIVN) about a takeover.
Steckleberg, speaking at the Barclays Global Technology Conference on Wednesday, said Zoom (ZM) is focused on its own contact center solutions business.
For acquisitions, “it could be what has historically been buying smaller tech and talent tuck-ins or it could be a larger, more transformative M&A opportunity that brings you other areas, not only products but areas of expertise,” Steckleberg said at the conference. “Beyond that, we also look at things that can fit adjacent to where our platform exists today. So that could be productivity. It could be expanding our verticalization, things about health care and education, which are really important for us today.”
The Zoom CFO’s comments come after Five9 (FIVE) on Tuesday said that while it was approached about a takeover offer, it’s not pursuing any deal. Five9 made the remarks after Bloomberg on Monday reported that the company was exploring a sale a little bit more than two years after it scuttled its planned sale to Zoom (ZM).
Five9 (FIVN) was reportedly working with advisers as it tried to gauge interest from potential buyers and Zoom (ZM) was said to have held talks with the company about resurrecting a deal, according to Bloomberg.
Shares of Five9 (FIVN), which jumped 7.4% on Monday, gave back most of their gains on Tuesday amid trader chatter that Zoom (ZM) wasn’t interested in pursuing another acquisition of Five9 after it originally agreed to buy the company in an all-stock deal that valued Five9 at $14.7 ~billion in July 2021. Zoom reportedly made the comments at a bus tour from a sell-side brokerage on Tuesday.
Five9 (FIVN) shares rose 1.9% on Wednesday, while Zoom (ZM) gained 2.8%.
Five9 (FIVN) is scheduled to present at the Barclays conference on Thursday.
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