Zoom, Five9 to terminate $14.7 bn all-stock deal after shareholder vote

Five9 Inc shareholders voted down the call center software firm’s $14.7 billion sale to Zoom Video Communications Inc on Thursday, a major blow to Zoom’s plan to expand its offerings following its pandemic boom.

The termination of what would have been Zoom’s biggest-ever acquisition comes after proxy advisory firm Institutional Shareholder Services (ISS) and Glass Lewis earlier this month recommended that Five9 shareholders vote against the deal, citing growth concerns and dual-class shares.

Under the deal terms announced in July, Five9 shareholders would have received 0.5533 Zoom share for every Five9 share. The terms implied a 12.8% premium over Five9’s market price and valued the company at $14.7 billion.