Call center software provider Five9 is reportedly exploring a potential sale, according to sources familiar with the matter. The move comes a little more than two years after the company scrapped a multibillion-dollar takeover by Zoom Video Communications.
Five9 has hired investment bankers to advise on a possible sale, the sources said. The company is not actively soliciting bids at this time, but it is open to hearing from potential buyers.
The news of Five9’s potential sale comes as the company is facing increasing competition from the likes of Genesys and Talkdesk. Five9 has been struggling to grow its revenue in recent quarters, and it is facing pressure from investors to improve its financial performance.
A sale could be a way for Five9 to get a fresh start and access the resources it needs to compete more effectively in the market. It could also be a way for the company to cash out its investors, who have been holding onto the stock for several years.
There are a number of potential buyers for Five9, including private equity firms and other technology companies. However, it is unclear if any of these companies would be willing to pay the high price that Five9’s investors are likely to demand.
Five9’s stock rose more than 10% on the news of the potential sale. The stock has been on a roller coaster ride in recent years, but it is still up more than 50% from where it was trading when the Zoom deal was announced in July 2021.
Impact on the Call Center Software Industry
A sale of Five9 would be a major shakeup in the call center software industry. Five9 is one of the largest and most well-respected companies in the industry, and its sale would create a significant vacuum.
The sale could also lead to a wave of consolidation in the industry, as other companies look to acquire Five9’s assets or customers. This could lead to higher prices for call center software and make it more difficult for smaller companies to compete.
Overall, the potential sale of Five9 is a significant development for the call center software industry. It is unclear what the outcome of the sale process will be, but it is certain to have a major impact on the industry.
The news that Five9 is exploring a potential sale is a surprise, but it is not entirely unexpected. The company has been struggling in recent years, and a sale could be a way to get a fresh start. It is unclear if Five9 will ultimately be sold, but the fact that the company is considering it is a sign that it is facing significant challenges.