Zoom’s merger agreement with Five9 terminated
Zoom Video Communications has terminated the merger agreement to acquire Five9, a provider of cloud contact centre solutions, three months after the $14.7 billion deal was initially announced.
In a statement released today, Zoom says Five9 did not obtain the requisite stockholder support for the merger agreement at a special meeting of stockholders held yesterday.
“While we were excited about the benefits this transaction would bring to both Zoom and Five9 stakeholders, including the long-term potential for both sets of shareholders, financial discipline is foundational to our strategy,” says Eric Yuan, CEO and founder of Zoom.
“The contact centre market remains a strategic priority for Zoom, and we are confident in our ability to capture its growth potential. At Zoomtopia, we announced the Zoom Video Engagement Centre, our cloud-based contact centre solution, which will launch in early 2022.
“Video Engagement Centre will be a flexible, easy-to-use solution that connects businesses and their customers. We are building this new solution with the same scalability and trusted architecture that has made Zoom the platform of choice for businesses around the world.”
Yuan noted that Zoom plans to maintain its existing contact centre partnerships with companies like Five9, Genesys, NICE inContact, Talkdesk and Twilio.
“We remain focused on driving long-term value creation for Zoom shareholders and delivering happiness to our customers through our broad-based communications platform, including unified communications, developer and events solutions.”
The merger agreement was first announced in July, with Zoom saying at the time that the deal would help enhance its presence with enterprise customers and allow it to accelerate its long-term growth opportunity by adding the $24 billion contact centre market.