Vendor says a portion of the money could be spent on M&A
Zoom is set to raise $1.75bn in funding and has indicated that it may use part of the cash for acquisitions.
The firm said it will generate the cash by offering 5,147,059 class A shares to the market.
In a filing with the SEC, Zoom revealed it could use part of the capital for M&A activity.
“We may use a portion of the net proceeds for acquisitions or strategic investments in complementary businesses, products, services or technologies, although we do not currently have any plans or commitments for any such acquisitions or investments,” the filing stated.
Zoom said that funds will predominately be used for working capital, operating expenses and capital expenditure.
It added that it does not have any agreements for acquisitions or investments in place at the moment.
The firm has not been acquisitive during its 10-year existence, with the sole deal being for Keybase to bolster its encryption credentials.
Any acquisitions would be off the bat of a buoyant 12 months amid the pandemic.
Zoom has seen its share price rise by as much as 800 per cent since listing in 2019, although its valuation is currently down by one-third from its peak last October.
It recently revealed that its Zoom Phone solution now has one million users despite only being available for two years.