Zendesk to acquire SurveyMonkey owner for $4 bn in all-stock deal

Terms of the deal provide for Momentive stockholders to receive 0.225 shares of Zendesk stock for each share of Momentive stock

Software as a service companies Zendesk and Momentive have entered into a definitive agreement under which Zendesk will acquire Momentive, including its SurveyMonkey platform. News agency Reuters reported the deal value to be at $4 billion. An email sent to Zendesk regarding the same did not elicit a response till the time of publishing.

Zendesk’s market capitalisation as of October 29 is $14.3 billion whereas that of Momentive is $3.62 billion.

Zendesk expects the combination to be growth accretive in its first full operating year and accelerate its revenue plan to $3.5 billion in 2024, one year ahead of its previous target. Upon the close of the transaction, Momentive CEO Zander Lurie will continue to lead the company’s management team.

Mikkel Svane, CEO and founder, Zendesk, said: “We’re very excited to have them join the Zendesk mission along with Momentive’s market research and insights products and together create a powerful new Customer Intelligence company. We will deliver a rich, colorful picture of every customer so businesses really understand their customers and can build more authentic relationships.”

The terms of the transaction provide for Momentive stockholders to receive 0.225 shares of Zendesk stock for each share of Momentive stock, a ratio which represents an implied value of approximately $28 per outstanding share of Momentive stock based on the 15-day volume weighted average price of Zendesk common stock up to and including October 26, 2021.

Upon closing of the transaction, Zendesk stockholders will own approximately 78 per cent of the combined company and Momentive stockholders will own approximately 22 per cent of the combined company. The transaction, which is anticipated to close in the first half of 2022, is subject to approval by Zendesk stockholders and Momentive stockholders, the receipt of required regulatory approvals and other customary closing conditions.