Zoom and Five9 abandon $14.7 billion acquisition

Eric Yuan, founder and chief executive officer of Zoom Video Communications Inc., speaks during the BoxWorks 2019 Conference at the Moscone Center in San Francisco, California, U.S., on Thursday, Oct. 3, 2019.

Michael Short | Bloomberg | Getty Images

Cloud contact center software company Five9 and video calling software maker Zoom said Thursday they will not go forward with Zoom’s plan to acquire Five9 for $14.7 billion.

Five9 shares fell 2% in extended trading following the statement from the companies, which said the agreement didn’t receive enough votes from Five9 shareholders.

A branch of the U.S. Department of Justice was reviewing the deal out of concern of potential foreign participation, according to a letter dated Aug. 27, that was sent to the Federal Communications Commission. But Zoom said last week, when news of the review was reported, that it still expected the deal to close in the first half of 2022.

While some large tech acquisitions, most notably in the semiconductor industry, have been scuttled of late by regulators, it’s highly unusual for companies to willingly terminate their own deal.

The two companies will maintain support for integrations of their products, according to the statement.

Zoom announced the intent to buy Five9 in July, marking the company’s first attempt to spend over $1 billion on a transaction.

This is breaking news. Please check back for updates.

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