Software as a service (SaaS) company ZoomInfo (ZI) recently announced that it has entered into a definitive agreement to acquire conversational sales intelligence platform Chorus.ai for 575 million. Following the news release, shares of the company declined marginally to close at $52.85.
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ZoomInfo expects the deal to be value accretive to the company. With likely positive adjusted operating income within 12 months and cash flow growth in the second half of FY 2022, the company expects the deal to be operationally beneficial.
With this purchase, ZoomInfo will be able to access Chorus’ leading proprietary tools to analyze sales communications of clients and help them formulate effective sales growth strategies in the future.
CEO of ZoomInfo Henry Schuck said, “The acquisition of Chorus will accelerate our vision to deliver a modern go-to-market platform that brings together best-in-class intelligence with comprehensive data management, workflow, and engagement software, empowering companies to effectively execute their revenue-generating strategies.” (See ZoomInfo stock chart on TipRanks)
On July 13, Mizuho Securities analyst Siti Panigrahi reiterated a Buy rating on the stock with a price target of $63 (19% upside potential).
“The transaction purports to more than double ZI’s TAM to $70B and offers a sensible, intuitive revenue synergy with ZI’s core Sales Intelligence offering,” the analyst said.
Consensus among analysts is a Strong Buy based on 11 Buys and 3 Holds. The average ZoomInfo price target of $64 implies upside potential of 20.9% from current levels.
Shares of the company have gained 32.4% over the past year.
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