Proxy advisor ISS seeks vote against Zoom-Five9 deal on growth doubts

FILE PHOTO: Small toy figures are seen in front of diplayed Zoom logo in this illustration taken March 19, 2020. REUTERS/Dado Ruvic/Illustration

(Reuters) - Proxy advisory firm Institutional Shareholder Services on Friday recommended a vote by shareholders against Zoom Video Communications Inc's $14.7 billion deal for cloud-based call center operator Five9 Inc, citing growth concerns.

Though the combined company will have access to a larger market, ISS said, "The all-stock deal exposes Five9 shareholders to a more volatile stock whose growth prospects have become less compelling as society inches towards a post-pandemic environment."