Second biggest tech acquisition of the year thwarted: Five9 shareholders knock down nearly $ 15 billion sale to Zoom
When everything seemed well under way, Zoom’s purchase of Five9 has encountered an unexpected stumbling block: the refusal of the shareholders of the former to be sold to the video-calling giant. “The agreement did not receive the necessary number of votes to approve the operation, so it was rescinded by mutual agreement”explains Five9 in a statement.
In July, Zoom announced the purchase of cloud contact center software provider Five9 for $ 14.7 billion, a significant sum that placed the operation, if completed, as the second largest of 2021 in the technology sector, only behind the nearly $ 20 billion Microsoft invested in acquiring Nuance.
The acquisition had to pass a series of phases, among them the approval of the majority of its shareholders and the approval of the US authorities, to be closed. The parties were on the same page and reported that they expected the purchase to be completed and effective by mid-2022..
According to the Wall Street Journal, the negative vote of Five9 shareholders on the sale to Zoom has come after a financial advisory warned them that Zoom, after the meteoric growth it had experienced during the first year and a half of the pandemic , it was stalling.
Likewise, the New York newspaper also reported a few weeks ago that the purchase was being investigated by the United States Department of Justice for Zoom’s alleged ties to the Government of China.
With the purchase of Five9, Zoom wanted to jump right into the burgeoning market for cloud contact center services, with which companies can offer multichannel customer service from the same platform. The cancellation of the operation represents a serious setback for the expansion and diversification of your business.