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

Five9 said it would continue the partnership with Zoom that was in place prior to the announcement

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