Zoom Video Communications has decided to terminate the $14.7 billion deal to buy cloud-based call center operator Five9.
The development comes after proxy advisory firm Institutional Shareholder Services earlier this month recommended Five9 shareholders vote against the deal, citing growth concerns.
“The agreement did not receive the requisite number of votes from Five9 shareholders to approve the merger with Zoom,” San Ramon, California-based Five9 said. “Five9 will operate as a standalone publicly traded company.”
A U.S. Justice Department-led committee was also reviewing Zoom’s proposed all-stock deal to buy Five9, according to a letter filed with U.S. regulators.
Five9 said it would continue the partnership with Zoom that was in place prior to the announcement.
