Five9, the US call center software company whose shareholders shunned a merger with Zoom last year, plans to expand in Europe by building two data centers and relocating its employees from Russia to Portugal.
The data centers will be located in Frankfurt and Amsterdam and will serve customers in Europe, the Middle East and Africa.
“About 10 percent of our revenue today comes from Europe… we aim to at least double our European contribution in the near future,” CEO Rowan Trollope told Reuters.
Shareholders of Five9, whose call center software is used by more than 2,000 companies, rejected a merger with Zoom in October after refusing to add cash to their offer, relying solely on shares as payment.
In light of the Russo-Ukrainian war, Five9 has also offered to relocate its 176 employees in Russia to Portugal, where it is opening a development site.
“The office in Russia will close on June 10,” Trollope said. “We’ve offered to transfer our staff and we don’t know what percentage of them will go, but it could be around 100 of them.”
Trollope expects its center in Portugal will employ around 300 to 400 people.
The US call center company snapped into the limelight last year after Zoom abandoned its $14.7 billion (about Rs.1,09,280) acquisition of call center software company Five9.
Zoom’s unwillingness to add cash to its offering and to rely solely on its shares as payment currency for the Five9 deal backfired after its shares fell by as much as 29 percent in the weeks following the July 2021 deal announcement Having slipped amid concerns about returning to physical meetings as the COVID-19 pandemic eases will undermine his business.
Five9 shareholders voted against the deal. Investment bankers and analysts said Zoom’s stock would likely remain volatile until investors determine what the prospects for its business will be after the pandemic ends. This reduces the chances of another acquisition target accepting Zoom’s shares as currency in the short term, they said.
© Thomson Reuters 2022
https://gadgets360.com/apps/news/five9-us-firm-zoom-merger-europe-expansion-data-centre-russia-staff-portugal-2966627 Five9 plans expansion in Europe with 2 data centers and relocates Russian staff to Portugal