Five9 shareholders voted to reject the call center software company’s $14.7 billion (approximately 1,0926 million rupees) sale to Zoom.
Five9 shareholders voted Thursday to reject the call center software company’s sale to Zoom Video for US$14.7 billion (approximately 1,0926 million rupees), which dealt a major blow to Zoom’s plans to expand its products after the pandemic. After the agency advisory firm Institutional Shareholder Services (ISS) and Glass Lewis advised Five9 shareholders to vote against the transaction earlier this month, Zoom’s largest acquisition in history was terminated, citing growth concerns and dual equity. According to the terms of the transaction announced in July, Five9 shareholders will receive 0.5533 shares of Zoom for every purchase of Five9 stock. These terms imply a 12.8% premium to Five9’s market price, and value the company at US$14.7 billion (approximately Rs 1092.6 billion).
Since then, Zoom’s stock price has fallen by more than 25% as the virtual meeting giant reported slowing growth during the second quarter earnings call. Towards a post-pandemic environment,” the International Space Station said in a report earlier this month. Five9, headquartered in San Ramon, California, said that the merger agreement did not receive enough shareholder approval votes and it will continue to operate as an independent public company. On Thursday, Zoom CEO Eric Yuan said that Five9 provides an attractive way to provide customers with integrated contact center products.
“In other words, this is by no means the basis for the success of our platform, nor is it that we provide our customers with compelling contact center solutions,” Yuan added. The company said it will launch its cloud-based contact center solution, Zoom Video Engagement Center, in early 2022. Five9 said it will continue its partnership with Zoom, which was in place before the announcement. As the pandemic suppresses events and companies and schools adopt its services to host virtual courses and office meetings, Zoom has become a household name and a favorite of investors. But with the rapid vaccination and the gradual return of life to normal, Zoom is looking for sources of income outside of its core video conferencing business, which faces fierce competition from competitors Microsoft, Cisco Systems, and Salesforce’s Slack.
According to a letter submitted to U.S. regulators, a committee led by the U.S. Department of Justice has been reviewing Zoom’s proposal to acquire Five9 for possible national security issues, but analysts said last week that the transaction is unlikely to be compromised. Cancel. In recent years, Zoom’s ties with China have received close attention. Five9’s share price has risen 19.3% since the deal was announced in July, but fell 1.1% to US$157.9 (approximately Rs 11,740) in an extended transaction on Thursday.
News Source : Gadgets 360
