Following prolonged pressure from activist investor Jana Partners after Zendesk failed to acquire SurveyMonkey parent Momentive Global in a $3.9 billion deal, an investor group led by Hellman & Friedman completed the acquisition of Zendesk in an all-cash transaction valued at approximately $10.2 billion.
The acquisition was previously announced on June 24, 2022, and it was approved by the company’s stockholders at the Special Meeting of Stockholders held on September 19, 2022, and it was supported by proxy advisory firm Institutional Shareholder Services (ISS).
Meanwhile, Light Street Capital Management, which manages funds that own more than 2% of Zendesk, previously stated that it would vote against the private equity deal and advocated for Zendesk to remain a standalone public company with a new CEO. Perhaps Light Street Capital Management’s efforts were in vain because the deal was eventually completed.
Zendesk shareholders will receive $77.50 in cash per share under the terms of the merger agreement. The company’s common stock ceased trading and will be delisted from the New York Stock Exchange as a result of the transaction’s completion.
Zendesk will continue to be headquartered in San Francisco as a privately held company.
The sources for this piece include an article in Reuters.