This lockdown has given rise to many companies with the name “Zoom”, one of them being ZoomInfo. While it was founded about 20 years ago, it’s initial public offering on Thursday helped it raise over $935 million. The company finds itself becoming successful in the wake of a global pandemic that has destroyed financial markets. So, what is ZoomInfo? What does the company do? How did they reach this stage? We will analyze these details in depth in this article.
Zoom Information Inc. (ZoomInfo) was founded by Yonatan Stern in 2000 as Eliyon Technologies. According to their website, they provide business information solutions. It provides sales and marketing intelligence to businesses worldwide. The company uses the maintains its Database using the “proprietary web crawler” NextGenSearchBot. They copy data from the web crawler and extract relevant information for analysis.
In August 2017, ZoomInfo went through a Private Equity Acquisition. The private equity firm, Great Hill Partners acquired the company for $240 million in cash. This would mark a chain of events that would eventually lead to ZoomInfo’s current success. In 2019, DiscoverOrg acquired the company for more than $500 Million. It further anointed its current leadership roles to the company’s Own CEO, Henry Schuck, CFO Cameron Hyzer, and Chief Revenue Officer Chris Hays. They would serve in the same roles in the joint entity. The firm was further rebranded later that year to be called “ZoomInfo powered by DiscoverOrg”.
According to the Financial Times, the business intelligence provider jumped by almost 90% in early trading on Thursday. ZoomInfo raised nearly $935 million from an initial public offering, providing hope of a resurgent market. The first trade was at $40 for 3.6 million shares, or 90.5% above its IPO price of $21.
The decision to go ahead with the IPO proved dividends for CEO Henry Schuk, who made the decision based on strong results posted by the company in April. Dragoneer Investment Group and mutual fund managers Fidelity and BlackRock further committed to buying $100 million in share offerings. This gave the company added support. This marked a busy week for trading in the US market, with the likes of Warner Music and Pliant Therapeutics thriving as well. This showed signs of recovery in the IPO market since the pandemic hit.
Is the US financial market finally starting to recover from the pandemic? Let us know about your thoughts regarding ZoomInfo’s IPO surge in the comments below!