With competition increasing in the videoconferencing sector Zoom Video Communications Inc announced a $14.7 billion all-stock deal to acquire Five9 Inc, a cloud-based call center operator, its largest-ever acquisition.

With the Coronavirus-induced COVID-19 pandemic resulting in the closures of schools and businesses, Zoom has become a household name and an investor favorite this year with many schools and businesses adopted its services to socialize, hold virtual classes, and office meets.

San Jose, California-based Zoom is now shifting gear and focusing on its two-year-old cloud-calling product – Zoom Phone and conference-hosting product Zoom Rooms, as it ups its game to compete in the big leagues dominated by players such as Alphabet’s Google and Facebook.

“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,” said Zoom in a statement.

The acquisition will complement Zoom Phone service, an alternative to legacy phone offerings, by adding Five9’s business customers and combining its contact centre software to optimize customer interactions across channels, said Zoom in statement.

Five9’s customers include Lululemon Athletica Inc, Under Armour, and Olympus Corp.

Following the acquisition, Five9 will become an operating unit of Zoom; its CEO Rowan Trollope, will become a president of the company, and stay on as its chief.

The deal is expected to close in the first half of 2022.

As part of the deal, which has been approved by the boards of both companies, Five9 stockholders will receive 0.5533 shares of Class A common stock of Zoom for each share of Five9.

Based on the prices of Zoom’s Class A common stock as of July 16, Zoom is paying a premium of nearly 13%, a price of $200.28 for each share of Five9 common stock, with the implied value of the deal being $14.7 billion.

With the news reaching the market, Zoom’s shares rose by 1.4% to $361.97 on Friday, valuing it at around $106 billion.

Goldman Sachs advised Zoom and Qatalyst Partners advised Five9 on the deal.