Zoom Acquires Workvivo: Revolutionizing Employee Communication in the Hybrid Work Era

Zoom, the leading video conferencing platform, has announced that it has acquired Workvivo, an Irish startup that provides an internal communications platform for companies to engage and connect with employees. The deal, which was announced on April 14, 2023, is expected to enhance Zoom's offering and give its customers new ways to keep employees informed, engaged, and connected in today's hybrid work model.

Workvivo was founded in 2017 by John Goulding and Joe Lennon, who saw a gap in the market for a modern, social media-like platform that could help companies improve their internal communications and culture. Workvivo has created a platform that brings together various communication and engagement tools to improve internal communication within companies. This includes an activity feed, a people directory, surveys, and important company messages. 

These features are combined with a social intranet and an employee app, creating a central hub for all internal communication needs. This all-in-one platform streamlines communication and makes it easier for employees to stay connected and engaged with their company. Workvivo claims to have a proven history of unparalleled levels of adoption and retention among its users, who include hundreds of customers worldwide, from SMBs to some of the world's most well-known brands, such as Amazon, RyanAir, and Lululemon.

Zoom, on the other hand, has become a household name during the global pandemic, as millions of people turned to its platform for remote work, education, and socializing. Zoom has also been expanding its product portfolio beyond video conferencing, with features such as Zoom Phone, Zoom Chat, Zoom Rooms, and Zoom Events. Zoom's acquisition of Workvivo is part of its strategy to become a comprehensive collaboration platform that can meet the needs of today's hybrid and distributed workforce. Zoom is facing challenges in the post pandemic world because of slow down, so new avenues of growth are the need of the hour.

According to Kelly Steckelberg, chief financial officer at Zoom, "The power of Workvivo's employee experience platform, with its robust communications and engagement offering combined with Zoom's all-in-one collaboration platform, allows organizations to fully unlock the potential of their employees and evolve their company culture in a hybrid world." She added that:

Workvivo has set the standard for employee communications, helping businesses reach and engage millions of employees worldwide. Workvivo prioritizes ease-of-use and simplicity of design, offering the best user experience which is a perfect match to Zoom's DNA.

John Goulding, CEO and co-founder at Workvivo, expressed his excitement about joining Zoom. 

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," he said. "Our platform replaces outdated, clunky internal communications tools with a vibrant familiar social experience and has a proven history of unparalleled levels of adoption.

The terms of the deal were not disclosed, but Workvivo had raised around $38.5 million since its inception, including a $22 million Series B last year led by existing investor Tiger Global. Interestingly, Workvivo had also received a direct angel investment from Zoom founder Eric Yuan back in 2019.

The acquisition is expected to close in the second quarter of 2023. Workvivo will continue to operate as an independent entity within Zoom and will retain its brand name and identity. The two companies plan to integrate their platforms over time to offer a seamless experience for their customers.

The acquisition of Workvivo by Zoom is a significant milestone for both companies and for the employee communication and engagement space. It signals the importance of creating a positive employee experience that fosters connection, collaboration, and culture in today's hybrid work environment. It also showcases the potential of combining video conferencing with internal communications to create a more engaging and productive workplace. You can read more about this news from https://news.zoom.us/workvivo-acquisition/