Flush with cash and a near-record stock price, Zoom (ZM) isn’t the only corporate titan making power moves on the deal front as execs look to grab market share post-pandemic.
Zoom, which is buying cloud contact center Five9, has now inserted itself into a mind-blowing year for M&A in large part thanks to high cash positions coming out of the COVID-19 pandemic and still rock-bottom interest rates.
About $1.9 trillion of deal value for U.S.-based acquirers has been announced so far this year, according to new data from Goldman Sachs. The level represents the highest volume of M&A at this point in the year since at least 2000.
“The 2020 recession led to robust debt and equity issuance. Now, cash balances are high and S&P 500 managements are deploying some of the cash on M&A deals,” said Goldman Sachs chief U.S.
equity strategist David Kostin.