Both companies mutually agreed to cancel the deal after the proposed business combination failed to receive adequate Five9 shareholder voter support.
Five9 develops cloud-based contact center software that’s delivered as a service (SaaS). With the Zoom marriage canceled, Five9 will continue to operate as a standalone publicly traded company.
As of mid-September 2021, Zoom and Five9 had been pressing forward with the now-scrapped deal. At the time, reports suggested that a U.S. Justice Department-led review of the deal was expected. Among the areas of concern: Potential cybersecurity issues caused by the business combination.
Also in September 2021, proxy advisory firm Institutional Shareholder Services recommended Five9 shareholders to vote against deal, citing growth concerns, Reuters reported.
Further complicating matters, Wall Street is worried Zoom will face slowing growth and intensified competition from Microsoft and Cisco Systems, among others, as businesses strive to rebalance in-office and video conferencing-based meetings.