Zoom Video Communications Inc., the popular video-conferencing platform, has announced that their merger with Five9, a cloud service provider, has been mutually terminated. The multibillion dollar merger was initially announced in July of this year, but was called off after less than three months.
Five9 was featured in CXBuzz’s Landscape Map as one of the most relevant companies in the customer experience space.
The reason behind the merger’s dissolution was reportedly Five9’s inability to acquire support from its stockholders. This support was necessary to continue the merger, and without it, both companies decided to abandon the merger. According to Reuters, the proxy advisory firm Institutional Shareholder Services recommended a vote against the deal.
“The contact center market remains a strategic priority for Zoom, and we are confident in our ability to capture its growth potential,” said Eric Yuan, the founder and chief executive officer of Zoom in a press release. “At Zoomtopia, we announced the Zoom Video Engagement Center, our cloud-based contact center solution, which will launch in early 2022.”
Regarding the dissolution of the deal, Yuan said: “While we were excited about the benefits this transaction would bring to both Zoom and Five9 stakeholders, including the longer-term potential for both sets of shareholders, financial discipline is foundational to our strategy.”
“The contact center is the new front door for business and, as the market shifts from on-premises to cloud and digital transformation accelerates, we believe we are positioned to build on this momentum and grow market share,” said Five9’s CEO Rowan Trollope.
The two companies have decided to maintain the partnership they had prior to the merger termination. This entails integrative projects for their Unified Communications as a Service, Contact Center as a Service, and marketing efforts.