Software companies firm Zendesk explained on Thursday it would buy Momentive Worldwide, owner of the well-liked SurveyMonkey platform for just about US$four billion (A$five.3 billion) in an all-stock offer.
Momentive shareholders will obtain .225 shares of Zendesk’s stock for every share of Momentive stock they possess, which implied a worth of about US$28 for each share at the time of the announcement.
Zendesk’s stock plummeted 16 per cent in aftermarket trading, while Momentive also dropped just about 9 per cent to US$22.70 for each share.
Momentive, then named Study Monkey, went public in September 2018 at US$12 for each share.
The San Mateo, California-primarily based firm rebranded alone to Momentive in an work to extend to a portfolio of expertise administration companies previously this yr.
Zendesk, a client service software program seller, has faced tailwinds for the duration of the pandemic as its business prospects accelerate electronic transformation.
This will be the firm’s biggest acquisition.
“We have a massive overlap in prospects. It really is very highly effective. And we imagine that it will make a total new, richer image of your prospects,” Mikkel Svane, main government at Zendesk explained to buyers on Thursday.
The offer is predicted to near in the first fifty percent of 2022, pending approvals from Zendesk and Momentive shareholders.
A sharp downturn in stock price ranges has earlier resulted in the collapse of all-stock deals this kind of as Zoom’s US$fourteen.seven billion invest in of software program company Five9 .
Zendesk also described its quarterly revenue on Thursday, which grew 32 per cent to US$347 million.
It expects the offer with Momentive to accelerate its revenue program to US$3.five billion in 2024, one particular yr forward of its prior goal.
