An Investor Group Acquires Zendesk for $10.2 Billion

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A few days back, Zendesk had hinted that it was looking into an offer it had received in regards to its acquisition. The software company for customer experience revealed that a group of investors had approached them making an acquisition offer.

According to the tech firm, the investor group has made them an all-cash acquisition offer. Zendesk has announced that the acquisition proposal they received from the investor group was worth $10.2 billion. Zendesk made the announcement about the acquisition on Friday.

More Details Surrounding the Deal

Zendesk has revealed that the firm leading the deal coming from the investor group is Permira and Hellman & Friedman. On behalf of the investor group, Permira and Hellman & Friedman have proposed that they will be offering $77.50 per share to each shareholder.

Compared to the current stock price of Permira and Hellman & Friedman, the investor group has offered 34% more to the investors. The investor group has made this premium offer to the investors for their benefit.

Surprisingly, Zendesk announced to the rest of the investment community that they had accepted the offer. This meant that the company had agreed to accept the $77.50 per share offer and let the investor group take over.

Growth in Zendesk’s Share Prices

Following the announcement of the acquisition, the share prices for the software company experienced a significant rise. The share prices for Zendesk reportedly surged by 27.99% and they are now trading at a high of $74.17.

The market valuation for Zendesk has also jumped significantly and it is now worth $9.08 billion. Still, in a 12-month period, the overall growth of Zendesk has been -49.80%.

Future of Zendesk following the Acquisition

Following the acquisition, the investor group has plans of their own with the company. They have hinted that after gaining full control over the company, they will proceed with privatizing it.

The company will reportedly go private as soon as the deal is finished between the current Zendesk teams and the investor group.

The investor group comprises multiple major investors with their combined investment force. Among the members of the group are GIC and Abu Dhabi Investment Authority’s subsidiaries.

Completion of the Deal

It was revealed by one of the inside sources from Zendesk how the voting in favor of the acquisition went. The source confirmed that the entire board of directors at Zendesk was unanimous in deciding they will let the investor group take over.

Once the voting was unanimous, they decided to proceed with the deal. The deal is to complete by the end of the further quarter of the year 2022.

Now that the investors know that the company may go private in 2023, they may start pulling out of their investments as the year 2022 ends.

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