After Five9 shareholders voted to reject Zoom’s bid to acquire the call center software provider for $14.7 billion, the companies agree to close The deal, which was being examined by a government review committee.
An inter-agency committee led by the US Department of Justice said It will review the deal between the two companies last week due to concerns over whether Zoom’s ties with China would pose a national security threat.
Despite the investigation, Zoom said it still expects the deal to be completed and closed in the first half of 2022.
A proxy advisory firm, Institutional Shareholder Services, recommended that five of the nine shareholders vote on the proposal on September 17, citing growth concerns.
After the decision to drop the deal, Zoom said blog post That Five9 was “in no way foundational to the success of our platform,” and that the company would expand its growth into other areas.
Zoom announced its intention to acquire Five9 in July, marking the first time the company has attempted to spend more than $1 billion in acquisitions. According To CNBC, and making it the third largest tech deal announced this year. company said The addition of Five9 will “help enhance Zoom’s presence with customers,” and Five9 will provide an easy-to-use application to help optimize user interactions.
Following the announcement, Five9 shares fell 1.1% to $157.97 in after-hours trading. Shares of Zoom rose 0.36% to $262.45.
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