Communications platform Zoom is to buy Irish employee communications company Workvivo for an undisclosed sum.
Cork-based Workvivo, which developed an internal communications platform to increase employee engagement, will be incorporated into Zoom’s platform.
The deal is expected to bolster Zoom’s employee experience offering, helping customers to keep staff connected and engaged.
“We are excited to welcome the Workvivo team to Zoom. The power of Workvivo employee experience platform, with its robust communications and engagement offering combined with Zoom’s all-in-one collaboration platform, allows organisations to fully unlock the potential of their employees and evolve their company culture,” said Kelly Steckelberg, chief financial officer at Zoom. “Workvivo has set the standard for employee communications, helping businesses reach and engage millions of employees worldwide.”
Founded by John Goulding and Joe Lennon in 2017, Workvivo serves 300 customer organisations in 90 countries, including Ryanair, Liberty Mutual, Lululemon and Wynn Resorts. In June 2022, it raised $22 million (€20.8 million) in a Series B funding round led by US investment firm Tiger Global Management to fund product development and innovation. The company has raised more than $41 million to date, with early backers including Frontline Ventures, Enterprise Ireland and Zoom founder Eric Yuan.
Workvivo has seen significant growth in recent years, more than 100 per cent year on year, as the pandemic challenged companies to find better ways to engage and connect staff.
“Zoom’s rapid pace of innovation and the persistent dedication to building products with a human-first mindset is why we are most excited about joining the team,” said Mr Goulding. “Our platform replaces outdated, clunky, internal communications tools with a vibrant, familiar social experience, and has a proven history of unparalleled levels of adoption. With Zoom, we can build great things together, make teamwork more meaningful and extend collaboration beyond knowledge workers, allowing us to reach employees who have historically felt disconnected from the company.”
The deal is expected to close in the coming weeks, by the end of the first quarter of the 2024 financial year. Zoom’s 2024 financial year started in February.
The move is being widely viewed as a natural progression for Zoom, which saw a surge in its fortunes during the pandemic as the shift to virtual meetings and a ban on travel fuelled growth. At one point, the company’s shares reached $589, but that has since fallen back to fewer than $70 a share, hit by a return to more normal work patterns and the impact of slowing economies.
