Cloud-based call center operator Five9 Inc said on Thursday that its merger with Zoom Video Communications Inc has been terminated by mutual agreement.
The development comes a week after a US Justice Department-led committee was reviewing Zoom’s proposed $15 billion all-stock deal to buy Five9, according to a letter filed with US regulators.
The Aug. 27 letter filed with the Federal Communications Commission said the Committee for the Assessment of Foreign Participation in the United States Telecommunications Services Sector was reviewing to see if the deal “poses a risk to the national security or law enforcement interests.”
Analysts had said the deal, Zoom’s biggest to date, may be delayed by a US Justice Department-led committee review but was unlikely to be scrapped.
Earlier this month, proxy advisory firm Institutional Shareholder Services recommended Five9 shareholders to vote against the deal, citing growth concerns. (Reporting by Subrat Patnaik in Bengaluru; Editing by Shounak Dasgupta)