Five9 (NASDAQ: FIVN) shareholders refused Zoom’s acquisition as the offer was not sufficient with the value of the company, according to Five9’s chief executive Rowan Trollope. The deal, worth approximately USD15 Billion, had been positive for both stocks thus far.
“We had to ultimately let the shareholders vote and they made it clear that … the offer from Zoom wasn’t going to cut it,” Trollope said.
The companies officially terminated the agreement on Thursday after Five9 Shareholders made the decision on the all-stock offer. The arrangement, originally announced in July, went downhill as zoom shares began to fall amid concerns of its continuous decline in growth rate.
“There’s no acrimony. It is what it is,” Trollope said about Five9′s relationship with Zoom moving forward. “We are parting ways amicably.”
In the press release, detailing the termination, it was said that “Zoom and Five9 will continue the partnership that was in place prior to the announcement, which includes support for integrations between their respective Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) solutions and joint go-to-market efforts.”
According to to J.P. Morgan’s Auty, Five9 continues to be “the best in class pure play cloud vendor” within the cloud-based contact center Industry.
Moreover, Needham analyst Scott Berg believes that Zoom will pursue Five9 again once it is in the position to do so. “We believe this transaction gets done at a later date,” he writes.
For the time being, Zoom and Five9 will continue to work together.
“We will partner with them and look forward to, of course operating, independently,” Trollope said.