Zoom and Five9 have called off their deal, in which Zoom would purchase Five9 for $14.7 billion.
Zoom announced it was purchasing Five9 in July. Five9 is one of the leading cloud contact center providers. The deal was originally slated to complete in the first half of 2022, but the two companies have mutually ended the agreement.
“While we were excited about the benefits this transaction would bring to both Zoom and Five9 stakeholders, including the long-term potential for both sets of shareholders, financial discipline is foundational to our strategy,” said Eric S. Yuan, Chief Executive Officer and Founder of Zoom.
While Yuan emphasizes “financial discipline” as a motive for ending the agreement, the deal was already under US national security scrutiny. At the same time, Yuan emphasized Zoom’s ongoing commitment to the contact center market.
“The contact center market remains a strategic priority for Zoom, and we are confident in our ability to capture its growth potential,” Yuan continued. “At Zoomtopia, we announced the Zoom Video Engagement Center, our cloud-based contact center solution, which will launch in early 2022. Video Engagement Center will be a flexible, easy-to-use solution that connects businesses and their customers. We are building this new solution with the same scalability and trusted architecture that has made Zoom the platform of choice for businesses around the world. We also plan to maintain our valued existing contact center partnerships with companies like Five9, Genesys, NICE inContact, Talkdesk, and Twilio. We remain focused on driving long-term value creation for Zoom shareholders and delivering happiness to our customers through our broad-based communications platform including unified communications, developer, and events solutions.”