The maker of a customer management platform becomes the property of an investment group after it turned down a $17 billion bid in February.
Zendesk announces that it has entered into a definitive agreement with investment groups Permira on the one hand and Hellman & Friedman on the other. The company is being acquired for approximately $10.2 billion in cash. That’s a lot of money, but less than the founders and major shareholders probably would have liked.
These have certainly been turbulent times for Zendesk. The company, originally founded in 2007 and now serving some 170,000 customers worldwide, turned down a much higher bid of $17 billion in February. At the time, it seemed like Zendesk was worth a lot more.
That same month, a deal also fell through that saw Zendesk pay $4 billion for Momentive, the company that owns survey software SurveyMonkey. Shareholders of Zendesk rejected the deal.
Earlier this month, Zendesk said it wanted to remain independent, an announcement that sent the stock price plummeting. And now there is this, much cheaper, takeover. “The Board of Directors concluded that this transaction is the best alternative and voted unanimously in favour of the acquisition,” the press release said.