Oct. 28 (Reuters) – Software services company Zendesk Inc (ZEN.N) announced Thursday that Momentive Global Inc (MNTV.O), owner of popular SurveyMonkey platform, for nearly $ 4 billion in an all-stock Deal to buy.
Momentive shareholders will receive 0.225 shares of Zendesk for every share of Momentive they own, which is worth approximately $ 28 per share at the time of the announcement.
Zendesk stock slumped 16% in aftermarket trading, while Momentive also fell nearly 9% to $ 22.70 per share.
Momentive, then called Survey Monkey, went public in September 2018 for $ 12 per share. Based in San Mateo, California, the company has renamed itself Momentive to expand a portfolio of Experience Management Services earlier this year.
Zendesk, a customer service software provider, faced tailwinds during the pandemic as its enterprise customers accelerate digital transformation.
This will be the company’s largest acquisition.
“We have a lot of overlap with customers. It’s incredibly powerful. And we believe it will create a whole new, broader picture of your customers,” Zendesk CEO Mikkel Svane told investors Thursday.
The transaction is expected to close in the first half of 2022, subject to approval from Zendesk and Momentive shareholders.
A sharp drop in stock prices previously led to the collapse of all stock businesses such as the $ 14.7 billion purchase of software company Five9 Inc (FIVN.O) from Zoom Video Communications Inc (ZM.O).
Zendesk also announced its quarterly revenue Thursday, which rose 32% to $ 347 million.
The company expects the deal with Momentive to accelerate its revenue plan to $ 3.5 billion in 2024, a year ahead of its previous target.
Reporting by Krystal Hu in New York and Noor Zainab Hussain in Bengaluru; Editing by Arun Koyyur and Chris Reese
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