Is Five9 a Buy After Its Failed Merger With Zoom?
After its recent failed merger with Zoom Video Communications, the cloud contact center specialist Five9 (NASDAQ: FIVN) posted strong quarterly results, and management announced upbeat long-term goals. Yet the stock is trading at a discount to Zoom's initial acquisition all-stock offering. So does Five9 represent an attractive investment opportunity? Let's dig in.
A few months ago, Five9 and Zoom announced an all-stock merger agreement where Zoom agreed to acquire Five9 shares for $200.28 based on the price of Zoom's stock at that time.
From an operational perspective, the deal made sense. Five9's contact center solution, which handles communications between enterprise agents and customers, complements Zoom's unified video communication platform.
Source Fool.com