Video communications technology provider Zoom Video Communications (NASDAQ: ZM) recently revealed that the company has entered into a definitive agreement to acquire Solvvy. Solvvy is a conversational AI and automation platform that is focused on customer support. The financial terms of the deal, which is likely to close in the second quarter of Fiscal Year 2023, have not been disclosed.
Following the news, shares of the company are currently up over 8% in today’s trading session.
The impending acquisition aims to bolster Zoom Contact Center, the first omnichannel contact center platform that is ideal for video, offering things such as video, webchat, and SMS services to users. With the addition of Solvvy, Zoom Contact Center will gain access to Solvvy’s scalable self-service and conversational AI.
Notably, with Solvvy, Zoom Contact Center customers will get an automated, integrated, and easily deployable contact center that brightens the customer experience and helps save on costs.
President of Product and Engineering at Zoom, Velchamy Sankarlingam, said, “The nature of customer experience is transforming fundamentally, as enterprises increasingly need to deliver exceptional, personalized, and effortless customer experiences. Solvvy understands this shift and is the ideal platform to enhance our Zoom Contact Center offering.”
Wall Street’s Take
Yesterday, Piper Sandleranalyst James Fish downgraded the stock to a Hold from Buy with a price target of $96, which implies upside potential of 6.5% from current levels.
The Wall Street community is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 11 Buys and 15 Holds. The average ZM price target of $156.87 implies the stock has upside potential of 74.1% from current levels. Shares have declined 68% over the past year.
Zoom’s Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Zoom’s performance this quarter.
According to the tool, Zoom’s website recorded a 58.97% monthly fall in global visits in April, compared to the same period last year. Moreover, year-to-date, Zoom website traffic declined 42.7% compared to the previous year.
With digitalization and AI gaining prominence by the day, Zoom’s move to add Solvvy’s expertise to its customer support offerings is expected to be a beneficial strategic move for the company.
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