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Zoom Video Communications (ZM) announced it has entered into a definitive agreement to acquire Five9 (FIVN) in an all-stock transaction valued at $14.7B. As part of the agreement, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom Video for each share of Five9.

Based on the closing share price of Zoom class A common stock as of July 16, this represents a per-share price for Five9 common stock of $200.28. The boards of Zoom and Five9 have approved the transaction. "Combining Five9's Contact Center as a Service solution with Zoom's broad communications platform will transform how businesses connect with their customers, building the customer engagement platform of the future," the company said in a statement.

The acquisition "is expected to help enhance Zoom's presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24 billion contact center market," it added. Following the close of the transaction, Five9 will be an operating unit of Zoom, and Rowan Trollope will become a President of Zoom and continue as CEO of Five9.