Zoom, Five 9 to cancel all চুক্ত 15 billion stock deals after Reuters shareholder vote

ছবি Photo from Reuters File: This illustration, taken on March 15, 2021, shows a small toy in front of the Zoom logo.

Written by Subrata Patnaik and Crystal Hu

(Reuters) – Five9 Inc. shareholders voted in favor of a .7 14.7 billion sale of call center software firm Zoom video communication (Nasdaq 🙂 Inc. Thursday, a big blow to plans to expand its offer after the Zoom epidemic escalated.

Zoom’s biggest acquisition came to an end earlier this month following recommendations from Proxy Advisory Firm Institutional Shareholder Services (ISS) and Glass Lewis. .

Under the terms of the deal announced in July, five shareholders would receive 0.5533 zoom shares for every five shares. The terms imply a premium of 12.8% over the market value of the Five 9 and the company is valued at .7 14.7 billion.

Since then, Zoom’s stock has fallen more than 25% as the virtual conferencing giant reported a slower growth in its second-quarter earnings call.

“All stock deals bring FIVN shareholders to the forefront of more volatile stocks, whose growth prospects have become less compelling as society moves toward a post-epidemic environment,” the ISS said in its report earlier this month.

California-based Five 9 San Ramon said the consolidation deal did not receive adequate approval from its shareholders and that it would continue to operate as an independent publicly traded company.

Zoom CEO Eric said Thursday that the Five customers have presented interesting ways to offer customers an integrated communication center.

Yuan added, “That said, this was no basis for the success of our platform and was not the only way to deliver a mandatory communication center solution to our customers.”

The company says it will launch a cloud-based communications center solution, Zoom Video Engagement Center, in early 2022.

Five said it will continue its partnership with Zoom before the announcement.

Zoom became a family name and an investor’s choice as the epidemic forced activity and business, and schools adopted its services to conduct virtual classes and office meetings.

But with rapid vaccination and a return to normal life, Zoom was looking for a source of income outside of its core video conferencing business, which faced stiff competition from competitors. Microsoft Corporation Slack of (NASDAQ :), Cisco Systems Inc (NASDAQ 🙂 and Salesforce (NYSE :).

A committee headed by the U.S. Department of Justice was reviewing Zoom’s proposed Five of Purchase for possible national security concerns, according to a letter filed with U.S. regulators, although analysts said last week that the deal is unlikely to be scrapped as a result.[nL4N2QO2UD]

Zoom’s connection with China has been verified in recent years.

Shares of Five9 have risen 19.3% since the deal was announced in July, falling 1.1% to 7 157.9 in extended trading on Thursday.

Five, whose call center software uses more than 2,000 clients worldwide, counts companies such as Under Armor (NYSE :), Lulium Athletica (NASDAQ 🙂 Inc. and Olympus Corp. as customers.

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