Zoom Video Communications Inc. And Five9 Inc. Canceled the multi-billion dollar merger on Thursday after Five9 shareholders voted against a deal being investigated by the US Department of Justice.
Announced merger with Zoom on Thursday afternoon
It ended “by mutual agreement” after Five9 shareholders did not vote to approve the transaction. Institutional Shareholder Services Inc. has instructed Five9 investors to vote against the $ 14.9 billion all-stock trade as offers declined due to the volatile Zoom stock slump.
The merger of Zoom, a well-known video conferencing service, and Five9, which provides a communication platform for call centers. Potential security risks were also being investigated by the U.S. government..transaction Originally announced in July, And was scheduled to end in the first half of 2022.
Zoom CEO Eric Yuan said in a statement Thursday that Zoom plans to release its own cloud-based contact center solution called the Zoom Video Engagement Center in early 2022.
“We were thrilled with the benefits this deal would bring to both Zoom and Five9 stakeholders, but financial discipline is the basis of our strategy, including the long-term potential of both shareholders,” Yuan said. I am. “The contact center market remains Zoom’s strategic priority and we are confident in our ability to capture its growth potential.”
Five9 has been published Second release It detailed a general plan to move forward, with a financial announcement on November 8th and an event for financial analysts on November 18th.
“Since the transaction was announced, we have had a wide range of opportunities to engage with shareholders,” Rowan Trollope, Chief Executive Officer of Five9, said in a statement. “We are very grateful for their feedback and confidence in Five9’s future outlook and share their views on the important potential of value creation as an independent company.”
In after-hours trading on Thursday, Five9 shares fell nearly 2%, while Zoom rose about 0.2%.
Analysts didn’t seem overly worried about the future of Five 9 after the ISS told investors to vote against the proposal earlier this month.
Trust analysts said on September 17 that Zoom fluctuations lowered the target price of Five 9 shares from $ 212 to $ 190, saying, “If trading is closed, Five9’s underlying underlying trend remains strong. I think. ” Stock price. “We believe this could drive the interest of new investors if the company is not in a takeaway situation.”
Zoom and Five 9 stop multi-billion dollar merger in scrutiny
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