The Acquisition of Zendesk Worth $10 Billion

An investment group will acquire Zendesk for $10.2 billion in an all-cash deal

Customer service software company Zendesk has agreed to be acquired by an investment group in an all-cash deal that will give it a value of $10.2 billion. The deal, led by investment firms such as Permira and Hillman & Friedman H&F, will give shareholders about $77.50 per share of stock. Zendesk , which is about 34% higher than the last price at which the company’s shares closed, and after the deal was revealed, the stock went up by 27%.

The investment companies plan to take control of Zendesk and turn it into a private company upon closing the deal. The investment group includes a wholly affiliated company to the Abu Dhabi Investment Authority and GIC. It is reported that the Board of Directors of Zendesk has unanimously approved the deal, which is expected to be closed within The fourth quarter of this year.

In February, Zendesk rejected a takeover offer worth nearly $17 billion from a group of companies that also included Permira and H&F, and soon after, Shareholders rejected a $4.1 billion takeover offer from SurveyMonkey’s parent company Momentive, and last April Zendesk hired Catalyst to explore a suitable sale.

The company closed trading yesterday with a market value of $7.1 billion – less than half of what it rejected four months ago, and this morning, the company’s stock jumped about 50% before the market opened with successive news of the approaching deal, but the official deal was only about 34% higher From yesterday’s closing price, which means that traders have been ahead of events.

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