Starting from 2020, in March Zoom was a part of a group that purchased a minority stake in software firm Assembled Inc according to the research data. In May 2020, Zoom acquired Keybase Financial Group Inc. The company provides a secure messaging and file-sharing service, for unrevealed terms to boost its encryption technology. This acquisition by Zoom was the first purchase of Zoom in its nine-year history.
The negotiation for the deal took place over zoom video calls because of social distance requirements due to the pandemic. The acquisition of the 25-person start-up is the latest move in a 90-day plan that Zoom announced on April 1, 2020, to fix its security defects.
With the implementation of Keybase, Zoom users now can choose end-to-end encryption. This setting prevents anyone from calling in by phone, which is one way through which people can access meetings, and also disables the cloud-based recording of the chat.
Zoom to Acquire Five9
After such an acquisition, Zoom intends to buy call center provider Five9. The company will use its surging stock to pay for the deal giving Five9 investors 0.5533 shares of its Class A common stock under an agreement after the deal, Five9 will become an operating unit of Zoom.
The acquisition could drive Zoom into a $24USB market for contact centers. This will help the company to better compete with companies that hook up users around the world via the
internet. The deal is designed to help it build up Zoom Phone, a cloud-based calling service. The customers of Five9 include Under Armour, Citrix, Athena Health, and Lululemon. The deal is also designed as a way for Zoom and Five9 to sell products to each others’ customers.
After the Covid-19 pandemic hit, Zoom gained massive importance, because people were forced to stay at home and use the service to connect remotely to work, school, friends, and family. But investors have raised concerns this year about whether that growth will continue as vaccinations increase and shutdowns end.
As pandemic lockdowns are decreasing, the future of remote work has become an arising question, and Zoom’s competitors have introduced mixed-breed work features in a race to assist companies’ needs. Microsoft Corp. disclosed design changes to its team’s platform to enhance remote workers’ interactions in meetings. Alphabet Inc.’s Google has revealed updates to its Workspace productivity suite, including new tools for its Meet video conferencing system.
Zoom is taking advantage of a remarkable stock rally to fund the acquisition of Five9. Its stock mounted about five-fold during 2020 and has risen another 7.3% in the year to date, boosting its market value by $100 billion. The acquisition is the fourth deal by Zoom since the beginning of the pandemic and the first one in 2021.
Zoom to Acquire Karlsruhe Information Technology Solutions-kites GmbH
In June, Zoom declared without revealing terms that it had signed a deal to purchase German startup Karlsruhe Information Technology Solutions-kites GmbH, a translation software maker. The company has worked on creating real-time translation and transcription software. According to Zoom, the acquisition is a step to help in making easy communication with people who speak different languages, and that it’s looking to add translation capabilities to its video-conferencing application.
Kites began at the Karlsruhe Institute of Technology, and its technology was originally developed to perform in-classroom translation for students who needed help in understanding the English or German language that their professors were lecturing in.
Zoom already has real-time transcriptions, but it’s restricted to people who are talking in English. On a support page, Zoom also makes it clear that its current live transcription feature may not reach certain accuracy requirements. The company says it’s considering opening a research center in Germany, where the Kites team will be staying.